ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75)377
Vol.1975/0150

Disclaimer
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COMMISSION OFTHEEUROHBAN CGMMUMT1ES
I
i
COM(75)377 final .
Brussels ,18July 1975
Proposal fora
COUNCIL 'REGULATION
concluding anAgreement "between theEuropean
Economic Community and theRepublic ofIndia
ontrade intextile products andlaying down
provisions for itsapplication
(submitted totheCouncil bytheCommission )
CQM(75 )377final .

EXPLAITATORY MÎORAEDUM
1.ByaDecisionof-15October1974"theCouncilauthorizedtheCommission
toopennegotiationswithIndiaonbehalf€bxr!theCeonc&ucioii "" '\cr
ofanagreementontradeintextileproducts.Thisagreementnegotiated
underArticle4oftheArrangement RegardingInternational TradeinTextiles
willtakeoverfromtheAgreementconcludedin1970onthe"basisofthe
earlierlong-TermArrangement RegardingInternational TradeinCotton
t
Textiles.Theprovisionsofthe1970Agreementhavebeenmaintainedin
forcedefactobymutualagreement.'-1
2.InaccordancewiththeDecisionreferredtoaboveandinoonsultation
withtheArticle113Committee,theCommissionheldnegotiations withIndia
duringNovember1974andJanuaryandApril1975* -
Thesenegotiations resultedinadraftagreementbeingdrawnup,'It
providesinparticularfor;
(i)voluntaryrestrainttokeepexportstotheCommunityofcertain
cottonproductsintendedfordomesticconsumptionatagreedlevels;
(ii)inretr.yn,thesuspensionbytheCommunityofthequantitative
restrictions inforceintheMemberStatesontherelevantproducts
anditsagreementnottoinvokethesafeguardprovisionsofthe
Multifibres Arrangementprovidedthattheagreedceilingsareadhered
to:
■. -Vr.v:-,,
(iii)theadoptionofa"consultationclause"enablingtheCommunity,where
thereisarealriskofdisturbance ofthemarketincertainofthe
productsinquestion,toenterintoconsultations withIndiaonagreed
conditionswithaviewtoarrivingatmutuallyacceptablesolutions.
TheHeadsofDelegation,satisfiedthatthisdraftagreementreflectedthe
outcomeofthenegotiations ,initialledthetexton5June..

3.InviewofthefactthatthedraftagreementfixesCommunityvoluntary
restraintceilingsfor1975»1976and1977»itisnecessarytoestablish
thecriteriatobeappliedinallocatingtheseCommunityceilings.This
allocationwillVtaortabliohcd'inaccordancewiththeprocedurelaiddotvn
Article11ofRegulationNo1023/70sincetheceilingsareadministered
onthebasisofasystemofdoublechecking,theinstrumentinquestion
beingavoluntaryrestraintagreement.Theexportingcountryisnotified
oftheallocationandissuesexportlicencescertifyingthatthequantities
involvedhavebeensetoffagainsttheceilings,andtheCommunityauto­
maticallyacceptstheimportsonpresentation oftheseexportlicences.
Theallocationcriteriareferredtoebovearethosethatwerefollowedin
thepreparatory workcarriedoutintheCouncilfortheadoptionofthe
decisionsontheopeningofbilateralnegotiations undertheArrangement
RegardingInternationalTradeinTextiles.Theallocation ^"willtherefore
bebasedonthesecriteriaandinparticular ontheresultsofthework
alreadydone.
Inaddition,thisagreementalsoestablishesceilingsinrespectofcertain
MemberStates.
4.TheCommissionconsidersthatthedraftagreementconstitutes an
acceptableresultfortheCommunity.Itpropooeeto;theCouncilthe
co-palusion.ofuhisa^ree^ent -^ndthsadoptionofthe:provicionn&rits
applicationby.theadoptionoftheRegulation,thedraftofwhichic
annexed.
Thisallocationwillbethesubjectofaseparateregulationtobeadopted
bytheCommission,likewiseonthebasisofRegulation lTo1023/?0.

PROPOSALFORACOUNCILREGULATION
concludinganAgreementbetweentheEuropean
EconomicCommunityandtheRepublicofIndia-1.:
ontradeintextileproducts -andlayingdown
provisionsforitsapplication
'-; _;'ϊ.··/,·:··.;.ο"··■■·. · -··.
THECOUNCILOPTHEEUROPEANCOI-HIUIJITIES.7"''^ '
'• .•i
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity.
endinprrticularArticle113thereof;
:.....■ : ■*"■>. i
HavingregardtoCouncilRegulation(EEC)No1023/70of25May1970
establishing acommonprocedureforadministering quantitative quotas,and
inparticularArticle2thereof;
HavingregardtotheproposalfromtheCommission ;~.c-!
WhereastheAgreementontradeintextileproductsnegotiatedbetweenthe
EuropeanEconomicCommunityandtheRepublicofIndiashouldbeconcluded
andprovisionsforitsapplicationlaiddown;^^
WhereastheCommunityisobligedundertheAgreementtopermitthe
importationofcertaintextileproductswithinquantitative limitswhich
Indiaundertakestoadheretobyapplyingvoluntaryrestraintinrespect
ofitsexportstotheCommunity; "'?
WhereasitisthereforenecessarytointroduceCommunityquantitative
quotas,tofixthevolumethereoffor1975»1976and1977and-toestablish
thecriteriafortheirallocation,withaccountbeingtakenofthesystem
ofdoublecheckingprovidedforintheAgreement;.r"
■;•..... i3-
%NoL124,8.6.1970.

Whereasinviewoftheconsiderable disparitiesintheconditionstowhich
importsoftheproductsinquestionintotheMemberStatesarecurrently
subject,andgiventheparticularly sensitivenatureofthetextile
industryintheCommunity,thestandardization oftheseimportconditions
cenbeachievedonlyprogressively ;whereasthemaincriterionforthe
allocationoftheseCommunityquantitative quotasshouldbethatthe
volumesadmittedunderthepresentimportconditionsshouldbeprogressively
adaptedtomarketsupplyrequirements ;
WhereastheAgreementprovidesinrespectofcertainothertextileproducts
forthesuspensionbytheCommunityofthequantitative restrictions on
imports,togetherwithaspecialconsultation procedureenablingsafeguard
measurestobeadoptedwherethereisariskofmarketdisruption ;whereas,
inaccordancewiththisprocedure,Indiahasundertakentoapplyvoluntary
restraintinrespectofitsexportstocertainMemberStates?
whereasthevoluntaryrestraintinquestionwillbeadministered in
accordancewiththesystemofdoublecheckingprovidedforintheAgreement ;
Whereasitisthereforenecessarytoprovidefortheprovisionalretention
ofquantitative restrictions onimportsoftheseproducesintotheMember
Statesconcerned,thesuspensionofquantitativerestrictions intheother
MemberSte,tesandthesubsequentreplacementofthesevariousmeasuresby
uniformliberalisation measuresapplicablethroughouttheCommunity
WhereasproductsbroughtintothecustomsterritoryoftheCommunityunder
theinwardprocessingtrafficsystemortemporaryentryarrangements and
re-exported fromthatterritorywithoutfurtherprocessingorafterunder­
goingworkingshouldnotbesetoffagainsttheCommunityquantitative
quotasorthevoluntaryrestraintmeasuresadoptedinrespectofexports
tocertainMemberStates;

HASADOPTEDTHISREGULATION :i.••:• ■.L.r<.'i;'?.'
-s•■'r'y''"i'--•1'•■■-■°
Article1
TheAgreement "betweentheEuropeanEconomicConmunityandtheRepublicof
Indiaontradeintextileproducts,thetextofwhichissetoutinAnnexI
tothisRegulation,,isherebyconcludedonbehalfoftheCommunity.
Article2
ThePresidentoftheCouncilisherebyauthorizedtodesignatetheperson
enpoweredtosigntheAgreementandto-conferonhiathepowersherequires
toenterintoanundertaking onbehalfoftheCo:3nunity.
Article3
1.ImportsintotheConiaunityofthetextileproductsonthelistin
AnnexIIoriginatinginandcoiningfronIndiashallbesubjecttoConmunity
quantitative quotas. :'.,•• •:i
2.Thevolumesofthequotasfor1975»1976and1977arefixedinthelist
referredtoinparagraph1.. .L..
However,thevolumesoftheaquotasfixedfor1975arereducedbytheaaiount
ofimportseffectedinthatyearbeforetheentryintoforceoftheAgreement.
3.Thequotasshallbeallocated,inaccordancewiththeprocedurelaid.•
downinArticle11ofRegulation(EEC)No.1023/70,insuchawayasto
ensuretheexpansionafidorderlydevelopmentoftradeintextilesendto
permitcarryoverandcarryforward fromyeartoyear.
-, ' '■-H-Ï
Theallocationshallbeuade,however,onthebasisoftheimportvolumes
admittedontheconditionscurrentlyappliedinthelieraberStatesand >
•,. "f"...
shallprovideforannualratesofincreasethatareappreciablyhigherfor
theMemberStateswhoseimportvoluaesarerelativelythelowestsoasto
adapttheaprogressively tomarketsupplyrequirements .' .,,,

4.Importauthorizations ehallbegrantedin.accordancewiththesystem
ofdoublecheckingdefinedintheAgreement.
r••t•r-v/
5»Products "broughtintothecustomstomtoryoftheCommunityunderthe
inwardprocessingtraffic -systemortemporaryentryarrangements and*-
re-exported ;froathatterritorywithoutfurtherprocessingorafterunder­
goingworkingshallnotbe.setoffagainstthequotasprovidedforin
paragraph 1.
Article4
l,3"'WithoutprejudicetotheprovisionsofArticle5»importsintothe
CommunityofthetextileproductsinAnnexIIIoriginatinginandcoming
fromIndiaehallnotbesubjecttoquantitativerestrictions .
•.1•
Article5
■:v;J'r:...iri ''
1.'Fortheyears1975?1976and1977»importsintotheMemberStatesindicated
inthelistinAnnexIIIofthetextilicproducts referredtoinArtiole4shall
belimitedtothevolumesindicatedinthesaidlist.
However,thevolumesofquantitativerestrictions fixedfortheyear
1975shallbereducedbytheamountofimportseffectedinthatyearbeforethe
entryintoforceoftheAgreement.
2.Importauthorisations shallbeissuedbythecompetentauthoritiesofthe
MAcberStatesconcernedinaccordancewiththesystemofdoublecheckingdefined
intheAgreement.'; '*x
,7zr:<'o'■>.r..'-.v■■
3.Productsintroducedintothecustomsterritory6ftheCommunityunder
inwardprocessingrulesorteaporaryadmissionrulesandreexportedoutside
thatterritoryinthesamestateoraftbrfurtherprocessingshallnotbe
countedagainstthequantitativerestrictions providedforinparagraph1.,
4»Thevolumes'ofquantitativerestrictionsprovidedforunderparagraph1.
maybeadaptedinaccordancewiththeprocedureprovidedforinArticle11
ofRegulation(EEC)No.1023/70.

Articleo
ImportsintotheCoraaunityofthetextileproductsreferredtobelow,
originatinginandcomingfrouIndiaandaccompaniedbyacertificate
issuedandendorsedbytherelevantIndianauthoritiesinaccordancewith
theprovisionsoftheAgreement,shallnotbesubjecttoquantitative
restrictions :
(i)cottonhandloo:ifabricsofthecottageindustrycontainingnot
norethan5$byifeightofmanladefibesjbeingfabricswhichare
bothtraditionally ofthekindwovenonhandloo^sandactually
wovenonalooaforwhichthemotivepowerisprovidedentirelyby
theoperators(thatiswherethethreeprimarymovementsofweaving
namelyshedding,pickingandbeating,areinducedbyhandorfoot
andnoothersourceofpoT.:erisused)}
(ii)goodsaade^-upbythecottageindustryfro:asuchcottonhandloom
fabrics ?
traditionalIndianfolklorehandicrafttextileproductscut,sown
orotherwisefabricatedbyhandincottageswhichareunitsofthe
cottageindustry.
Article7
1.ThisRegulationshallenterintoforceonthethirddayfollowingits
publicationintheOfficialJournaloftheEuropeanCoixjunities .
2.Articles3to6inclusiveshallapplyfronthedateofentryinto
foroeoftheAgreeaent.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallilenberStates.iii
DoneAtBrussels, FortheCouncil
ThePrésident

AGREEMENT BETWEEN
THEEUROPEAN ECONOMIC COMMUNITY
.ANDTHEREPUBLIC OFINDIA
ONTRADEOFTEXTILEPRODUCTS
(REFERREDTOINARTICLE1OFTHEREGULATION )

ANNEXI
TheCouQoiloftheEuropeanCommunities
oftheonepart.
TheGovernmentoftheRepublioofIndiaoftheotherpart.
Desiringtoensuretheorderlyandequitabledevelopmentoftrade
intextilesbetweentheEuropeanEconomicCommunity,hereinafter
called"theCommunity"andIndia,
HavingregardtotheprovisionsoftheArrangementregardingInternational
TradeinTextiles(hereinafterreferredtoastheGenevaArrangement)
andespeciallyitsArticle4,
Eavedecided,inaspiritofmutualco-operation andinconformity
withthesaidGenevaArrangement,toconcludethisAgreementandto
thisendhavedesignatedastheirPlenipotentiaries >
THECOUNCILOPTHEEUROPEANCOMMUNITIES S
THEGOVERNMENT OPTHEREPUBLICOPDTDIA
Whohaveagreedasfollotrst

Article1
1*ThePartiesrecogniseandconfirmthatfsubjecttotheprovisions
ofthisAgreementandwithoutprejudicetotheirrightsandobligationsunder
theGeneralAgreementonTariffsandTrade,theconduotoftheirmutual
tradeintextilesshallhegovernedbytheprovisionsoftheGeneva
Arrangement *
2.ThisAgreementshallapplytotradeinthosecategoriesof
textilesproducts,originatinginanddespatchedfromIndia,whichare
listedinAnnexesIandIIheretoandtothosereferredtoinArtiole5
hereof.
3.Indiaagreestoestablishquantitative limitsonexportstothe
CommunityinaccordancewiththeschedulesetoutinAnnexIhereto*
QuantitiesofthequotasharessetoutinAnnexInottakenupby
amemberStateoftheCommunitymaybere-allocated toanothermember
StatewithinthelimitsdecidedbytheCommunityinaccordancewiththe
proceduresinforceintheCommunity.TheCommunityundertakesto
respondwithin4weeksofitsreceipttoanyrequestmadebyIndia
forsuchre-allocation .Itisunderstoodthatanyre-allocation eo
effectedwouldnotneedtobeconfinedwithinanylimitssetin
flexibilityprovisionsestablishedelsewhereinthisAgreement*
m*
»•

Article2
1*ThoCommunityundertakes,inrespectofthecategoriesof
textilesproductstowhichthisAgreementapplies,andsubjectto
thesatisfactory operationofthisAgreement,nottointroduce
newquantitativerestrictions ,tosuspendtheapplicationofany
atpresentinforceandtorefrainfrominvokingtheprovisions
ofArticle3oftheGenevaArrangementprovidedthatexportstothe
Communityofsuchtextilesproductsoriginatinginanddespatched
fromIndiadonotexceedthequantitative limitsestablishedunder
theprovisionsofthisAgreement *
2•TheIndianGovernmentundertakestotaketheappropriate
measurestoensurethatthequantitative limitsestablishedunder
thiBAgreementarenotexceeded*
3*TheCommunityshallnotobjecttotheaforementioned quanti­
tativelimitsbeingexceededintheeventofadditionaldemand
developingonthemarketoftheCommunity,ontheunderstanding
thattheadditionalquantitiesshallbefixedbycommonagreement
betweenbothParties*
4*BothPartiesundertaketocooperateinimplementingthe
measuresnecessaryforthepurposeofthisArticle*

Article 3
L*Imports Into theCommunity ofthose textile products towhich this
Agreement applies which areforimmediate re-export orforinward
processing andsubsequent re-export outside theCommunity shall not
besubject toquantitative limits established under this Agreement v
provided they areentered assuch under anadministrative system of
oontrol inforce forthis purpose within theCommunity *
2*Inanycase where Community authorities ascertain that imports
desoribed inparagraph 1above have been retained forconsumption
within theCommunity ,thelatter will notify theGovernment ofIndia
onaquarterly basis oftheamounts involved *India shall insuch
oases andattherequest oftheCommunity ,charge such amounts against
thequantitative limit orlimits inquestion forthecurrent Agreement
year orforthenext following Agreement year *
3*Inanycase where thecompetent authorities within theCommunity
ascertain under anadministrative system ofcontrol inforce that
imports oftextile products towhich this Agreement applies have
been charged against quantitative limits established under this
Agreement butsubsequently re-exported outside theCommunity ,the
eompetent authority concerned will inform theIndian authorities
ofthequantities involved andauthorise imports ofthesame quantities
which shall notbecharged tothequantitative limits under the
Agreement *
A^u ,

Article k
1. Thefollowing Indian textiles products shall ,subject tothe
conditions indicated hereafter ,beadmitted into theCommunity without
quantitative limit :
(i) cotton handloom fabrics ofcottage industry ,containing
notmore than 5^byweight ofman-made fibres ,being
fabrics which areboth traditionally ofthekind woven
onhandlooms andactually woven onaloom forwhich the
motive power isprovided entirely bytheoperators (that
iswhere thethree primary movements ofweaving ,namely
shedding ,picking andbeating ,areinduced byhand orfoot
andnoother source ofpower isused );
(ii)goods made upbythecottage industry from such cotton
handloom fabrics ;
(iii )traditional Indian folklore handicraft textiles products
cut ,sewn orotherwise fabricated byhand incottages which
are units ofthecottage industry .
2. Admission into theCommunity ofthese products without quantitative
limit shall besubject tothesatisfactory operation ofagreed arrangements
for certification *
AA A

)
Article 5
1* Both Parties agree toenter promptly into consultations with
each other ,attherequest ofeither andinconformity with the
provisions oftheGeneva Arrangement ,onanymatter concerning their
trade intextiles andinparticular onanyproblems arising from .the
application ofthis Agreement *Consultations held under theprovisions
ofthis Artiole shall beapproached byboth Parties inaspirit of
compromise andwith aview totheconciliation ofdifferences existing
between them *
2* TheCommunity may ,inparticular ,whenever conditions inits
market give rise toreal risks ofmarket disruption ,request consultations
with India inaccordance with theprocedures setoutinparagraph 5
below with regard totheproducts referred tobelow andtothose listed
inAnnex IIhereto *
3* If,intheopinion oftheCommunity ,imports intotheCommunity
oftextile products offibres other than cotton indirect competition
with those listed inAnnex IandIIhereto cause real risks ofmarket
disruption ,theCommunity mayrequest consultations with India under
identical conditions tothose specified inparagraph 5ofthis Article *

-2-
Article5cont'd
4*Ifanexcessiveconcentration oftradeinanyspecificproduct
withinthecategorieslistedinAnnexIheretocausesarealriskof
marketdisruptioninrespectofthatproduct,theCommunitymayrequest
consultations withIndiaunderidenticalconditionstothosespecifiedin
paragraph5ofthisArticle*
5*Inthosecasesdefinedinparagraphs 2,3and4ofthisArticle,
Indiashalllimit,inaccordancewiththeCommunity *srequest,exports
oftheproductsorcategoriesofproductsinquestion,destinedfor
theCommunitymarketorforitsmarketinoneormoreofitsMember
States,pendingamutuallysatisfactory conclusiontothesaidconsultations ,
atalevelindicatedbytheCommunitywhich,atanannualrate,shallnot
belowerthan107%oftheimportsrecordedforthesaidproductor
categorythereofduringthe12monthsending3monthsbeforethactinwhich
therequestforconsultation wasmade*
6*Consultations shallbeheldattherequestofIndiainorderto
reviewtheneedforthemaintenanceormodification ofanyquantitative
limitestablishedunderthisArticle,whenevermarketconditionswhich
ledtotheestablishment ofsuchquantitativelimitnolongerprevail*
•»

Article6
If,havingregardtotheprovisionsoftheGenevaArrangement,
Indiaconsidersthatasaresultofthequantitative limitsesta­
blishedunderthisAgreement,itisbeingplacedinaninequitable
positionascomparedwithathirdcountry,Indiamayrequestcon­
sultationswiththeCommunitywithaviewtotakingappropriate
actionconsistentwithbothParties'international rightsandobli­
gations*

Article7
1*(a)WithinanyoneAgreementyear,unusedportionsofquantitative
limitsestablishedunderthisAgreementmay"betransferredto
anotherquantitativelimitsoestablished,undertheconditions
setoutbelow.
(b)TransfersmayonlybeeffectedunderthisAgreementasfollowst
(i)intocategory55.09(cottonfabrics)and,therein,
intothesub-categoryex55-09(cottonfabricsother
thangreyandbleached)fromanyothercategoryshown
inAnnexIhereto,providedsuchtransfersdonotexceed
10$ofthequantitativelimitintowhichtheyex®made}
(ii)betweenthecatégories s
61.02.8?(women'sshirtsandblousesofcotton)
ex-62.02(householdlinens)
providedsuchtransfersdonotexceed10$ofthe
quantitativelimitforthecategoryintowhichthey
aremade.
(iii)fromcategory55.09(cottonfabrics)intot
(a)-sub-categoryex-55-09(cottonfabrics,otherthan
x greyandbleached)
-categoryex-62.02(householdlinens)
providedsuch"transfersdonotexceed7%the
quantitativelimitforthecategoryorsub-category
•intowhichtheyaremadef
(b)category61.02.87(women'sshirtsandblousesofcotton)
providedthatsuchtransfersdonotexceed51"ofthe
quantitativelimitforthecategoryintowhichthey
aremade.
2.PortionsofanyquantitativelimitestablishedunderthisAgreement
whicharenotusedduringanyAgreementyearmaybecarriedoverandad­
dedtothecorrespondingquantitativelimitinthefollowingAgreement
year,withinalimitof10£ofthelatter.
3.Withinalimitof10%ofeachofthequantitativelimitsestablished
"underthisAgreement,advancedeliveriesshallbeauthorisedfromthe
correspondingquantitativelimitestablishedforthefollowingAgreement
year.Amountsdeliveredinadvanceshallbedeductedft-omthequantitative
limitsfortheproductsinquestionforthefollowingAgreementyear.

Article7cont'd
4*Theprecedingflexibilityprovisionsshallnot,inanygiven
Agreementyear,resultinaquantitativelimitforanycategory
beingexceededbymorethanthefollowingpercentageofthequan­
titativelimitforthatcategoryforthatAgreementyearS
55.09(cottonfábrica);*20>
ex-55*0?(cottonfabrics,otherthangreyorbleached):w20%
61*02.87(women*8shirtsandblousesofcotton):H15
ex-62.02.(householdlinens);f*20$
5*TheflexibilityprovisionscontainedinthisArticlemayonly
beappliedbyIndiafollowingwrittennotificationtotheCommunity
bytheIndianauthorities.
V^

Article8
Indiashallendeavourtoensurethatexportsofalltextiles
preductsforwhichquantitativelimitsmaybeestablishedtinder
thisAgreementarespacedoutasevenlyyaspossibleovereach
oftheAgreementyears,dueaccountbeingtaken,inparticular,
ofseasonalfactors*

Article 9
ThetvoParties agree toexchange allUBeful Information
concerning their mutual trade interfile .toorder toensure
thesuccessful implementation ofthisAgreement .
• • »
Iri.il

Artiole10
1*ThePartiesagreethatthequantitative limitsestablishedunder
thisAgreementshallbemanagedunderasystemofdoublecontrol,the
detailsofwhicharesetoutinAnnexVtothisAgreement*
2*IndiathereforeagreestofurnishtheCommunitywithprecise
statisticalinformation,onaquarterlybasis,ofallexport
authorisations issuedbytheIndianauthoritiesforallcategories
oftextileexportstotheCommunitytowhichthisAgreementapplies.
3*TheCommunitywilllikewiseforwardtotheIndianauthorities
pnaquarterlybasis,precisestatisticalinformationofimports
ofsuchproductsintotheCommunity.

Artici©11
1.Bothpartiesshalltakeallpossiblemeasurestoensurethat
traditionalchannelsandmethodsoftradebetweentheCommunityand
Indiaaremaintained.:
2.ShouldtheCommunityinformIndiathattheapplicationof
thisAgreementhasgiven,risetodifficulties regardingthemain­
tenanceofexistingcommercialrelationsbetweenimportersinthe
CommunityandtheirsuppliersinIndiaithePartiesagreetoconsult
togetherinaccordancewiththeproceduressetoutinArticle5above
/YU\

Article12
WithoutprejudicetotheotherprovisionsofthisAgreement,
Indiaagreesthatquantitativerestrictions withregardtoimports
intoIrelandofthefollowingtextileproductsfromIndiamay"be
maintaineduntil30.6*77atthelatest*
CCTHeadinirNo.ProduitriftKr-rin+.inn
..55*05Cottonyarn,notputbyforretailsale
55*06Cottonyarn,putbyforretailsale
55*07Cottongauze.
/m*

Article 13
This Agreement shall apply totheterritories where theTreaty
establishing theEuropean Economic Community applies ,ontheconditions
established intheBaid Treaty ,andtotheterritories towhich the
Constitution oftheRepublic ofIndia applies *
(y
m

Article 14
1* This Agreement shall enter into force onthefirst dayofthe
month following thedate onwhich theContracting Parties have notified
each other cfthecompletion oftheprocedures necessary forthepurpose *
Itshall remain inforce until 31December 1977 *
2* This Agreement shall enter into force ,inthemanner defined
inparagraph 1ofthis Article ,with effect from 1January 1975 *
3. ■Either Party mayatanytime propose modifications tothis
Agreement ordenounce itprovided that notice isgiven atleast 120
days before theexpiry ofanytwelve-month period ;inthelatter event
theAgreement will come toanendattheexpiry ofthesaid twelve-month
period .
4* TheAnnexes tothis Agreement shall form anintegral part thereof

Articlels
ThisAgreementshalltoedrawnupintwooopiesintheGerman,
French,Italian,Dutch,Danish,EnglishandHindilanguages,eachofthese
textstoeingequallyauthentic *

ANNEX I
Products for which India will exercise restraint towards
thewhole Community from theentry into force ofthis Agreement
TheCommunity hereby notifies India that thequantitative limits
forthetextile products listed below will beallocated between the
Member States asfollows :
Products category
orsub-categoryMember
Statequantitative limits (metrie tons )
1975 1976 1977
55.09
eotton fabricsFRG
F
I
BNL
UK
Irl
DKh.590
3.836
1.000
1.687
22.825
136
8665.512
4.480
1.300
2.025
22.939
163
9716.412
5.221
1.690
2.355
23.054
195
1.073
ofwhich i-EEC 34.940 37.390 40.000
ex55.09
cotton fabrics other
than grey orbleachedFRG
F
I
BNL
DK
Irl
DK3^3
•366
219
273
1.810
70
419419
^32
267
322
1.819
70
421498
502
318
360
1.828
71
423
EEC 3.500 3.750 4.000
61.02.87
vomen's shirts and
blouses ofeottonFRG
F
I
BNL
DK
Irl
DK250
115
130
148
122
5
184250
115
130
148
122
5
184.268
128
139
150
140
5
184
EEC 954 95H 1.014
ex62.02
(62.02.11,41,43,47 ,
71,73 )FRG
F
I
BNL
DK {
Irl
DK2.291
138
197
292
4.008
9
6572.556
207
256
315
4.008
13
6602.789
310
333
400
4.028
21 .
663
EEC 7.592 8.015 8.5V »
kl

AMEX II
Produots subject tospecial consultation procedures tinder
the provisions ofArticle 5
CCT Headi ngïïo. Product description
55*08 Terry towelling ofcotton
ex6O.O4 "T^shirts
6l.O3.i5 Mén(8shirts ofcotton
6I.O5.B.30 Cotton handkerchiefs

AUNEX III
1. Indonformity with Article 5oftheAgreement ontrade intextile
products conoluded between theCommunity andIndia ,consultations have
been held between theParties regarding imports from India into the
Community ofthetextile products listed below .
2. Asagreed intheconsultations mentioned above ,India shall
«
limit exports oftheproducts listed below totheregions ofthe
Community market andtothequantitative limits indicated *
CCTHeading No.Community région Animal Quantité
Products covered towhich restriction (with effect
isapplied
55*08 Terry towelling ofcotton UKfrom 1.1.1975 )
450tons
ex60.04
6l.O3.i5
6l.O5.3OT*shirts
Mens *shirts ofcotton
Cotton handkerchiefsFrance
UK
UK2.250.000 unit *
663*960 unit/
4.344.933 doz.
3. Should thequantitative limits referred toabove remain inforce for
afurther period ,orperiods ,of12months ,thelevel forthat period
shall notbelower than thelevel specified forthepreceding 12month
period ,increased bynotlessthan7$»

1
KmEXIV
TTnnflloomandtextilehandicraftartidsa
1.InaccordancewithArticle12,paragraph3oftheGenevaArrangement
regardingInternational Trad®inTextiles,theCommunityandIndia
,haveagreed,inArticle4ofthisAgreementontradeintextilesthat,subjecttocertainconditions,Indianexportsofcertain
handloomandtextilehandicraftproductswouldbeadmittedintotheCommunitywithoutquantitativelimit.TheconditionssetoutinArticle4,paragraph2oftheabove-mentioned Agreement
specifiesthatadmissionofsuchproductsintotheCommunitywithoutquantitativelimitshallbesubjecttothesatisfactory
operationofagreedarrangementsforcertification.
2.TheCommunityandIndiaherebyagreethatincarryingoutthepro­visionsofArticle4ofthisAgreementthefollowingformofcerti­
ficateshallbeused.
^Certificateinregardtocottonhandloomfabrics__andjDroduct athereof
Nameandaddressofmanufacturer
Waraeandaddressofexporter
25ameandaddressofEECimporter
DescriptionofgoodsQuantity(metrictons)
Sameofshiporflightnumber
Portorairportofdestination
ThisistocertifythattheaboveshipmentisI
(i)cottonhandloomfabricsofthecottageindustry,containingnotmorethan5$*yweightofman-madefibres,beingfabrics
whicharebothtraditionallyofthekindwovenonhandloomsandaotvallvwovenonaloomforwhichthemotivepowerisprovided
entirelybytheoperators(thatiswherethethreeprimarymove­
mentsofweaving,namelyshedding,pickingandbeating,are
inducedbyhandorfootandnoothersourceofpowerisused;?
(li)Goodsmadeupbythecottageindustryfromsuch
eottonhandloomfabrics?
(Hi)traditionalIndianfolklorehandicrafttextilesproductsout,
e®wnorotherwisefabricatedbyhandincottageswhichare
unitsofthecottageindustry® wSignod..a.
3.Thebodieswhichshallbeauthori'eJtoissueth©abovecertificatesaretheTextileCommissionerinBombay,oroneofhisinAhsnedabad,toritjar,Calcutta,Coiinbatore,KanpurandMadras.
AInadditionsuchdescriptivecertificateshallbeendorsedbya4°Governmentagencytotheeffectthatthe^onsigmentisapproved
forexport,withoutanyquantitativeceilings,astheAgreementontradeintextilesconcludedbetweentheCommunityandIndiaandintheGenevaArrangementregardingInternational
TradeinTextiles®
*

Annexv
AsagreedbetweenthePartiesinArticle10oftheAgreement,the
administration oftextilesimportsfromIndiawillbebasedona
systemofdoublechecking.Thedetailsofthissystemhavebeen
agreedbetweenthePartiesandaresetoutbelow.
ThecompetentauthoritieswithintheCommunitywill,automatically
andwithoutdelay,acceptimportsoftextileproductsonsubmission
oftheimporter*sapplicationtogetherwiththeoriginalexportlicence*
ThecompetentauthoritieswithintheCommunityshallbeentitledto
requirethepresentation ofanexportlicenceinrespectofgoods
originatinginIndiaofthecategoriesshowninAnnexIand(inany
casewheretheprovisionsofArticle5havebeeninvoked)ofAnnexII*
TheseexportlicenceswillbeissuedbytheIndianauthoritiesuptothe
totalamountoftheagreedceilings*
TheexportlicencesissuedbytheIndianauthoritiesshallbeapplicable
totheproductssubjecttorestraintundertheAgreement *
TheexportlicencemustspecifyI
1*destination
2*serialnumber
3*importer'snameandaddress
4*exporter'snameandaddress
5*netweight(inkilogramsormetrictons)andvalue
6*categoryanddescriptionofproduct
7*certificateissuedbytheIndianauthorities showingthatthequantity
hasbeendebitedagainsttheagreedceilingforexportstotheCommunityor
wereappropriate ,isforimmediatere-exportorforinward-processing and
subsequentre-exportoutsidetheCommunity *
ThecompetentauthoritieswithintheCommunitywillnotraisedifficulties
intheeventofadiscrepancy betweenthewei^itindicatedintheexport
licenceandtheshipmentorimportweightprovideditiswithinreasonable
limits,whiletheIndianauthorities,fortheirpart,willendeavour
tokeepanydiscrepancies toaminimum*
Intheeventoftotalorpartialwithdrawalofanexportlicence,the
IndianauthoritieswillnotifythecompetentauthoritieswithintheCommunity
ofsuchtotalorpartialwithdrawal *TheauthoritiesoftheMemberStates
oftheCommunitywilltaketheappropriatemeasuresinaccordancewiththeir
existingadministrative provisions.

ÀMEXVcont'd
TheIndianauthoritieswillforwardtothecompetentauthoritieswithin
theCommunity,viatheEmbassiesoftheMemberStatesoftheCommunity
anddirectlytotheCommission,quarterlyreturnsshowingthetotalnet
weightinmetrictonscovered "bytheexportlicencesissuedagainstthe
quantitativelimitsforexportstheCommunity,aswellastheallocation
oftheaeexportlicencesamongstthememberStatesoftheCommunity,for
allcategoriesoftextilesexportstotheCommunitysubjeottoquantitative
limitsunderthisAgreement *
!

ANNEX vl
Conversion Factors
Inthecourse ofnegotiating theAgreement ,itwasnoted
that restrictions previously inforce inonemember State had "been
expressed insquare yardG ,whereas under theAgreement metric weight
units areused fortheCommunity asawhole .Itwasfurther noted
that inorder toarrive atbase levels ,forquantitative limits in
thenewAgreement therelationship between square yards andmetric tons had
been directly derived from customs statistics relating toimports
oftheproducts inquestion from India .
TheIndian delegation expressed concern lest ,nevertheless ,
thoeffect ofthi3 change might prove toberestrictive interms of
thotrade opportunities provided .Fortheavoidance ofdoubt ,itwas
confirmed onbehalf oftheCommunity that thechange ofunit of
measurement wasinnowayintended tohave this effect .
Itwasfurther agreed that foratransitional period oftwo
years (1975 1976 )theCustoms authorities oftheMember State
concerned (thetJnited Kingdom )would maintain
arunning check onboth thotonnago andsquare yardage ofimports
from India andthat ifduring this transitional period thesquare'
yard equivalent ofthequantitative limits expressed intons wasnot
reached ,additional imports would beaccepted toalevel not
exceeding the pctnare yard equivalent derived asindicated above .
Incase anewratio emerges bythoendof1976 ,thequantitative
limit for1977 cxpreeced intons ,will befixed onthebasis ofnew
ratio andappropriate growth factor *
íxiU

ANNEX VII•)
Sir .
Inconcluding thenegotiations held bstween the government
ofIndia and theEuropnan Economic Community which have ledthis
c«ay tothe signing ofanAgreement regarding the trade intextile
products ,Ihave thehonour toconfirm thefollowing record of
understanding :
Inthe view oftheIndian delegation thequantitative limits
fortheproducts falling within category ex62.02 (household
linens )fortheyears 197'J end1977 1 shown inAnnex I,did
not t?ke fully into account thepotential ofIndier. 'sexports
tothe Community market .
Areview will beheld ,attherequest ofIndia ,inorder to
assess theposition and todetermine ,onamutually agreed
basis ,whether and towhat extent anupward revision ofthe
quantitative limits inquestion should bemade -.
Ishould begrateful foryour confirmation that thenbewe
correctly represents ourunderstanding inthematter .
Please accept ,Sir ,the ncsur-'inccs of r.:yhighest consideration .

ANNEX VII
Your Sxcellency ,
Ihave thehonour torefer toyour letter oftoday 'sdate
inthe following terms :
"Inconcluding thenegotiations hold between theGovernment
ofIndia and LheEuropean Economic Community which have led this
day tothesigning ofanAgreement regarding the trade intextile
products ,Ihave thehonour toconfirm the following record of
•understanding :
Intho view oftheIndian delegation thequantitative limits
fortheproducts falling within category ex62.02 (ho-.;.~ehold
linens )fortheyears 1976 and1377 »asshown inAnnex I,
exports tothe Comrnunity narket .
Areview will beheld ,attho request ofIndia ,inorder to
assess theposition and todetermine ,onamutually agreed
basis ,whether and towhat c;:tent onupward revision ofthe
quantitative limits inquestion should bemade .
Ishould bograteful foryour confirmation that theabove "
correctly represents oururderstarming inthematter ."
Iconfirm that this correctly sets outourunderstanding
inthe matter *
Please accept tYour Excellency ,therssurances ofnyhighest
consideration .did not take fully into account thepotential ofIndian 's
•(VU-

Comniunityceilingsmm.ii
;'."j
(referredtoinî>
Article3t*1®Régulation)
i •'
; .tu
CCTheaaingHo
55.09
ofwhich
ex55.09
ex61.02
ex62.02Description
mi
Wovenfabricsofcotton34940
Wovenfabricsofcotton,
otherthanunbleached
or"bleached 3500
?
Women'scottonshirtsand
"blouses 954
Cottonhouseholdlinen '7592Volumes ,
(intonnes)<
MLi1221;
i•
37390 140000
3750
954
8015".4000
;ï
:1014
|8544

ANNEXIII
(referredinArticle5
oftheRegulation)
CCTHeadingNo.i
•iDescription UombevState \
i
.j
iVolume,• |
|19751976... 1977 ■
55.081
TerrytowellingandUnitedKingdofii I450 481. 5X5'
siailarterryfabrica,< tonnes tonnes ;* tonnesI
ofcotton !
!ex60.Oh T-shirts France 2250000 ΓΤ-07500 2575990
]
1units units unitsI
l
iex61.03 Men'scottonshirtsUnitedKingdo^n 663960 710437 760167
1 units units unitsi
!ex61.05 Cottonhandkerchiefs UnitedKingdoa 4314933 4649078 4974512
dosen dozen dozen 1