ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)129
Vol.1981/0034

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(81)129 final
Brussels,13thAu9g1
FOROFFICIAL USEONLY
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
concerning therenewaloftheArrangement regarding
International TradeinTextiles (MFA)
and
RECOMMENDATION FORACOUNCIL DECISION
authorising theCommission tonegotiate therenewalof
theArrangement regarding international TradeinTextiles
C0M(81)129final

Communication fromtheCommission ■'
totheCouncilconcerning theCommunity 's
commercial policyfortextileproducts
. .' •». !^
RenewaloftheArrangement regarding International TradeinTextiles (MFA).
.'Introduction :.
1.Thepresent MFAexpires on31December 1981.Themeetingofthe ,
6ATTTextiles Committee heldon9December 1980wastheoccasion .
oftheformalopeningofnegotiation onthequestion whetherthe
Arrangement shouldbeextended,modified ordiscontinued after'
» V "
thatdate.TheCommunity declared .atthismeetingthatbefore
-theexpiryofthepresent MFAaparticular regimefortradein
;■ )■ .■
textiles shouldagainbeenvisaged .Thesenegotiations willcon­
tinueatformalandinformal levelsin1981.Thenextmeetingof
theGATTTextiles Committee wi11takeplaceon7and8May;the
Commission therefore feelsthatthetimeisripefortheCommunity N
toformulateitsinitialbroadobjectives forthesenegotiations .
In'theCommission 'sviewanextension oftheMFAbeyond1981isnecessary
*. a • >>
inordertoavoidchaosintheworldtextiletrade;asinthepast,such,
extension mustbelimitedintime.Thetextile andclothingindustries must
likeotherindustrial sectors,acceptinternational competition .
Thepresentcommunication concentrates onthemostimportant '
issuesasperceived atthisstageconcerning therenewaloftheMFA.
Insofarassomeaspectsofthe.Community 'sbilateral agreements
formtheessential background totheMFAnegotiations ,theseare
brieflydiscussed inAnnexVIITheCommission hasalreadytrans­
mittedtotheCouncilproposals 'regarding outwardprocessing (1)
andpreferential countries (2)andwilltransmitfurthercommunications
orrecommendations totheCouncil asrequired Inthelightof
developments . '
i r
'' ' "''t
(1)COM(81)61 Finalof11/3/1981
(2)COM(81)53 Finalof11/3/1981

-2-
Situationofthetextileandclothingindustryin'theCommunity
.TextilesandclothingarestillamajorindustrialsectorintheCommunity.
Comparedwithtotalmanufacturingindustrytheyaccounted,in1979,for
some9.6%ofthelabourforce,6.4%ofvalueaddedand6.9%oftotalturn­
over.
3.Between1973and1980theCommunityindustryunderwentconsiderablestruc­
turaladjustment (AnnexeI):-
employmentin1980stoodat1,370,000intextiles,and960,000inclothing,
atotalof2,330,000.In1973,thetotalwas3,124,000.Theloss,therefore,
amountstosome800,000,or25%andthelatestfiguresshownosignof
anydiminishingtrend?
-since,thebeginningof1980theacceleratingjoblosseshavehithardest
theleastfavouredregionsoftheCommunity-anditappearsthatthiswill
continue.Byreasonoftheirstructuraldifficultiestheseregionsare
particularlyill-equippedtocopesimultaneously witharestructuringof
thetextilesectorwhichisessentiallycapitalintensiveandthecreation
ofalternativejobsinothersectors.
-thenumberoffirmsfellby15%;
productivityincreasedbyabout4%annuallyintextilesand3,5%annually
inclothingasaresultofinternalrationalization ,thedisappearance of
lesscompetitivecompaniesandconcentration oncapitalintensiveproduc­
tion;
valueadded(1973-1979atconstantprices)increasedby13,5%intextiles
and18,9%inclothing;theincreasesmeasuredintermsofvalueaddedper ■
,person-employedwere48%and51%respectively .
Thedataavailableindicatesthatinvestmentinrealtermsdeclinedinthe
sameperiod. ^
4.Whereasconsumptionbefore1973roseannuallybyabout3to4%,therateof
increasehasfallentoaverylowlevelsincethen(AnnexIIJ).Theshareof
householdexpendituredevotedtotextilesandclothingsteadilydiminished.
From1973to1979,theannualgrowthinconsumption was1,2%fortextiles
and1,1%forclothing.Suchlevelsarelikelytopersistforthetimebeing.
5.TotalCommunityproductiondeclinedinthesameperiodby3.6%fortextiles
and2%forclothing.
*SeeAnnexII /

-3-
Tradedevelopments
6.AsregardstheCommunity' ?externalimports,theTableinAnnexIVsetsoutthe
evolution intheperiod1973-1980 .Theessential features canbesummarized as
follows : 1974-1977 '1978-1980
Imports (4years)(3years) i
•■. N Percentage increases >
Ailsources..-. 1.......... t.+61.4-'30.3
Industrialized countries........... +30.7 58.9
Countries covered bythetextile
policy. .............. +75.0 22.6 ,
• -ι ·
..- . •**
•ofwhich,countries withbilateral , ,/
agreements .\ n.a. 18.6* !;
In1980imports have .risenbyonly2.4%butthisislargely duetothefallin
demand,ratherthanarealrecovery intheCommunity industry'sposition,and
merelyreflects thenormalcyclicalpatternintextile andclothing demand.
■ . 1973-1977 1977-1979
-- .– ■/
Exports (4years)(2years)
Total ,extra 16.5%-0.5%
Industrialised countries n.a. +3.7%
Countries covered bythetextile
policy n.a. -4.2%
Imports haverisenmuchfasterthanexports,whichhaveshownlittlegrowth ,since'
1977.Theoveralltr^dedeficitinthesectorwhichamounted to208,500tin1977
roseto578,000in1979;invaluetermstthe1977deficit was1,,129million EUA•
whichroseto3,012million EUAin1979.
''' 'x
Unti1,1979theCommunitystillhadaslightsurplusintonnage termswith,
industrialised countries,butifpresenttrendscontinuethissurpluswill
soondisappear .
Thesetradedevelopments havetakenplace-against abackground ofanannual
growthofconsumption ofonly1,2%.In1979importsaccounted fofapproximately
41%oftotalconsumption oftextiles andclothing,compared withapproximately 1
21%in1973. ■-
./.
*ThesefiguresconfirmtheCommission 'sassessment madeinitsReportontwo
years'operationoftheMultifibre Arrangement /C0MC80)438finalpage9and
Annex111/thattheCommunity 'stextilepolicyhashadasubstantial sta-•
biUsingeffectontherateofgrowthofimportsfromcountries coveredby
theCommunity 'stextilepolicy.
J

_4-
GeneralframeworkoftheCommunity'sTextilepolicy.
7.Inviewofthesedevelopments andoftheindustry'spresentsituation,the
Commissionfeelsitnecessarytomaintainforafurtherperiodanexternal
policyonthelinesofthatadoptedin1977.
ThesecondMFAhasbeenmoreeffectivethanthefirstindecelerating the
growthofimports,But'ithasnotyetenabledtheCommunitytocompletethe
restructuring andreconversion towhichitiscommittedunderArt1para4
oftheMFAandwhicharerecognisedasnecessarytoreestablishthe
Communityindustry'scompetitiveness ./
TheCommunity'sexternaltextilespolicyisonlyoneelementintheframe­
workneededforthisrestructuring .Itneedstobecomplemented bya
coherentinternalpolicy.Thisshouldaimfirstlyatpreservingand
developingtheCommunity'sinternalmarketsoastoprovideanadequate
dimensionforcompanystrategy.Itshouldalsofosterthestimulation at
nationalandcommunityleveloftheindustry'sinnovativeefforts.Inthis
contextitisessentialtostrengthencommunitycoordinationofnational j
aidstorestructuring .Evenwithimportrestraint,restructuring willlead j
.tofurtherjoblosseswhichbyreasonofthegeographicconcentration ofthe !
textileandclothingindustrieswillhavemajorregionalrepercussions .The
Community'sfinancialmechanisms,andinparticulartheRegionalandSocial
Funds,willthereforehavetobeusedtobackuptherestructuring and
reconversion aswellasindustrialinnovation .
TheMultifibreArrangement andtheCommunity'sbilateralagreements
8.TheobjectivesofthepresentMFA,asdefinedinitsArticle 1para2,are
essentially theexpansionandIiberaIisationoftradeanditsorderlyand !
equitabledevelopment whileensuringtheavoidanceofdisruptiveeffects.The
Commissionconsidersthattheseobjectivesremainvalid.TheCommissionthere­
forerecommendsthatinthenegotiations theCommunityconfirmtheimportance !
itattachestotheobjectivesorArt1para2oftheMFA.
9.TheCommunity'spolicyinregardtoitstradewithMFAsuppliercountries
restsontheMFAandbilateralagreements.TheCommissionconsidersthe
lattertobethenecessarycomplementtothemultilateral arrangement,and
thatafundamentalobjectiveof theCommunityintheforthcomingnegotiations
shouldbetomaintainabasisfortheconclusionwithsuppliercountriesof
bilateralagreementsofthetypenowinforceunderMFAArt4andtopavethe
way.vforthenegotiationthereof.'
'.0.Dt'ringthelastMFArenewalnegotiations,theCommunityargueditscasefor,
generalisedrestraintfromalllow-costoriginsonthebasisofcumuIative
marketdisruption.Inpresentcircumstances,theCommissionconsidersthat
theCommunitymustcontinuetotakethisposition.

Itshouldberecalledthatthesupplierpartnercountriesarepressing
foraliberalisation ofexistingtradearrangements (1)andinparti­
culartheelimination ofimportgrowthratesbelowthe67.level
(acceptedbyimportercountriesatatimeofconsumption growthof
3-4%p.a.)eventhoughtheMFApermitslowergrowthlevelsin
exceptional circumstances .,Theprevailingaveragegrowthratein
demandintheCommunityisonlyabout1%p.a.,andisnotexpected
toriseintheforeseeablefuture.Thisfactor,togetherwtththe
obstaclestoaccessforCommunityexportsoftextilesandclothing
tootherworldmarketsmeanthatitishardlypossibleforthe
Communitytoenvisageageneralised importgrowthrateof6%
withoutimperilling theorderlyandequitabledevelopment of
tradeandavoidanceofdisruptiveeffectsforeseenbytheMFA;
growthrateswillneedtotakeaccountofconsumptiontrendsonthe
Cornffiuiiitymarket. -
.Inthelightoftheabove,theCommissionconsidersthatthe
followingguidelinesforthenegotiations canbestsecurethe
objectiveenshrinedintheMFAoforderlyandequitabledevel­
opmentoftradeanc1-theeconomic:,ndsocialdevelopnentof
developingcountries.
Differentiation
Giventhatasindicatedabove(para11),ageneraliseduniform6%
growthrateforallrestricted lowcostimportsistoohighforthe
Community,agreaterdegreeofdifferentiation iscalledfor.
)StatementbytheColombiarepresentative onbehalfof
developingcountriesattheDecembermeetingoftheGATT
TextilesCommittee;Bogotaresolution("agradualreturn,
tofreetrade")

-6-
14.TheCommissionrecommendsdifferentiation betweenLowcost
suppliercountriesaccordingtotheirstateofdevelopment .The
principle'ofdifferentiating wasalreadyrecognisedinthenego­
tiatingdirectivesforMFAII.TheMFAitself(Art.6paras1
and2)specificallyenvisagesfavourabletreatmentfordeveloping
countriesandthenonapplicationofthecriterionofpastper­
formanceinthecaseofthosetextilesectorsinrespectofwhich
theyarenewentrants.Differentiation onthebasisofdegree
ofdevelopmenthgsalreadybeenacceptedbytheCouncilinthe
contextofgeneralisedpreferencesinrespectoftextilesproducts(1).
Thesystemcomprisesformulaewhichmaybeappropriatein
differentiating betweenvarioustypesofsuppliercountriesin
thetextilesandclothingsectors.TheCommissionproposesthat
theCommunityshoulddrawuponthismodelwiththeaimofstabi­
lisingitsimportsfromthemostdevelopedandcompetitivesuppliers
inordertobeabletogivemorefavourabletreatmenttothosewhich
areleastdevelopedandcompetitive .Theextentoftheobstaclesat
presentplacedinthewayofCommunityexportstocertainofthe
suppliercountriesconcernedwouldbeafactortotakeintoaccount
inthiscontext.Thispolicywouldrepresentadevelopment ofthe-
approachsuccessfully adoptedinrespectofMFAII.
15.Inordertobeabletoavoidreductionsinthepresentmarketaccess
ofthemostdevelopedandcompetitive lowcostsupplierstheCommis­
sionrecommendsthatpartofthequotasofcertainmajorsuppliers
shouldbereservedforoutwardprocessedproducts (2).Thiswould
alsobeonemeanstoobtainimprovedaccessfortheCommunity's
textileproductstothemarketsofthesecountries.Finally,the
Commissionconsidersthataparticulareffortshouldbemadeto
secureimprovedaccesstothemarketsofStatetradingcountries.
(1)Regulation EEC2894/79ongeneralisedpreferencesfortextilespro­
ducts.O.J.L332of27.12.1980,page1;thesameprinciplesgovern
theschemefor1981:seeO.J.L354of29.12.1980,page1.
(2)Cf.theCommission's
Finalof11/3/1981.proposal onoutwardprocessing C0M(81)61

Outwardprocessing
5-Asa'generalprinciple,theCommissionrecommendsinconformity
withitsproposalonthismatter(1)thatoutwardprocessed'
•productsshouldbesubjecttoaseparatetreatment,inthelight
ofthespecificsuggestionsmadeinparagraph11,and-15above,
andinviewoftheindustrialobjectiveswhichunderliethe
system. 11
Flexibility (MFAArt.4para.3andAnnexB)
*· -
'17.(a)Swinq
AnnexB,paragraph 5oftheMFAspecifically providesforalevel
of7percenttransfer("swing")betweenquotasfordifferent ,
categoriesofproductssaveinexceptional andsparinglyused
circumstances wherealowerpercentage maybejustifiedin
!whichcasethatlowerpercentageshallnotbelessthan5percent.
TheCommunity'sagreementsprovidefor5percentswingandplace
certainfurtherrestrictions ons„winginrespectofthequotas
forthemostsensitive (GroupI)products.Suppliercountries ^
attachgreatimportancetoAnnexB,paragraph5ofthe'MFA,but
itisfrequentlyattackedintheCommunityonthegrounds 1that
itenablesquotasforsensitiveproductstobeincreasedby
transfersfromquotas'whoseuseissolowthattheyareofno
commercialinterest.TheCommissionconsidersthatoneremedy
forthisproblemliesintheelimination ofunder-utilised
quotas.TheCommissiondqesnotrecommendthatachangeinthe
provisionsoftheMFAinthisregardbesought.
18.(b)Çarr^_forward_and_car ry_over .
Article4paragraph 3andAnnexBoftheMFAprovideforcarry
forwardandcarryoverfacilitiesbutittiasbeenarguedthat
theseprovisionsarenotmandatory (theCommunity'sbilateral .
•.agreementsallow5%ineachcase).TheCommissiondoesnotre­
commendthatachangebesoughtintheseprovisions oncondition
thattheycanbewaivedincertaincircumstances atthetime
ofnegotiation ofbilateralagreements.
(1)C0M(81)61finalof11.3.1981

I
Fraud(MFAArticle8)
19.AlthoughArticle8paragraphs 1and2oftheMFAdealwiththeproblem
offraud,thetextdoesnotspecifically laydowntheprinciplethat
100%ofgoods,theoriginofwhichhasbeenfraudulently misrepresented ,
mustbedeductedfromthequotaofthetruecountryoforigin.The
Commissionconsidersthatthisrepresents aweaknessinthepresent
arrangements andthattheprincipleof100%compensation shouldbeclearl
established atleastinsofarastradewiththeCommunityisconcerned.
TheCommission recommendsthattheCommunityshouldexploreinliaison
with,itsnegotiatingpartnersthemostappropriate meansofachieving
thisresult,whichcouldbesupplemented bythesuspensionofflexi­
bilityprovisionsincasesofprovenfraud.Furthermore theCommission
suggestsstrengthening thearrangements foradministrative cooperation
andorigincheckingforthepurposeofpreventingfraud.
SocialClause
20.TheCommission hasalreadydrawntheCouncil'sattentiontothe
possibility ofestablishing alinkbetweencertainpreferential
advantagesofferedbytheCommunityinthecommercialfieldandthe
observanceofcertainbasicinternational standardsgoverningworking
conditions C1).ItalsoindicatedwhichIL0conventions mightbetaken
intoaccountinthiscontext(2)andindicatedinaworkingdocument
howthisapproachmightbeappliedinthecontextoftheSystemof
Generalised Preferences (3).TheCouncilhasnotyetproncounced on
thisprinciple.
21.TheCommissionconsidersthatthedevelopment ofatextileindustry
indevelopingcountriesshouldcontributetothebettermentofthe
livingstandardsofthepopulations concerned,andfeelsthatitwould
bedesirabletoachievetherecognition ofthisprincipleinthecontext
ofinternational tradeintextiles.Respectofsuchaprinciplethrough
theIL0appearsimportantinordertoensurethattherewillnotbe
advantagesbasedonsocialconditionswhicharenotinconformitywith
recognised IL0standards.
(1)C0MC78)47Finalof16,2.1978 (Commission memorandum onthe
Lomenegotiations .
(2)C0MC78)492Finalof10.11.1978 .Commission communication
ondevelopment cooperation andobservanceofcertaininter­
nationalstandards .
(3)SEC(80)1316of19.9.1980.ThegrantofGSPbenefitwouldbe
linkedtorespectbythebeneficiary countryofspecified -IL0
conventions .Incaseofapparentnonrespect,theCommission,
actingonitsowninitiativeorattherequestofaMember
State,wouldasKtheIL0toverifythesituation.Afindingof
nonrespectwouldresultinnotification bytheCommission
ofintentionto.withdrawtariffconcessions followedbyactual
withdrawalinthecaseofcontinuednonrespectoftheIL0standards

"PriceClause -1
22TheMFAdoesnotspecifically dealwithclausesconcerning
* '.■ "1unfairpricing,althoughitshouldbenotedthatArticle9
callsuponparticipating countriestorefrainfromtaking
additionaltrademeasureswhichmayhavetheeffectof
nullifyingtheobjectivesoftheArrangement .TheCommunity's
agreementswithstate-trading countries (someofwhichare
•partiestotheMFA)includepriceclauses.Althoughthe
Communityhasneverformallyinvokedsuchaclause,informal ­
< < -
consultations havebeenheldagainstthebackgroundofsucha
■clause;theseconsultations yieldedanundertaking tgincrease
thepricesinquestionsubstantially . ,
TheCommissionconsidersthataclauseprovidingforconsulta-
'tionsintheeventofunfairpricingcanbeusefulin'
agreementswithstatetrading'countries.
Handloomprodifcts (MFAArticle .12,paragraph 3) ,,
23.Article12,paragraph3excludestheapplication oftheMFA
todevelopingcountryexportsofhandloomfabricsofthecottage
industry,orhand-madecottageindustryproductsmade'ofsuch
handloomfabric^,ortotraditionalfolklorehandicrafttextiles
products,providedthatsuchproductsareproperlycertified
underarrangements established betweentheimportingand.
exportingparticipating countriesconcerned.Developing
.countries'attachthegreatestimportancetothisprovision..
Exportsofhandloomandfolkloreproductshavegivenriseto
*problemsfromtimetotime,thesolutionofwh-ichhasnot
hithertoinvolvedachangeinthewordingoftheMFA.The,
Commission recommendsthattheCommunityseektomaintain
Iexistingarrangements inthisregard."
MFA'-text " .''
24.TheCommissionbelievesthat.theexistingtextoftheMFA
allowsalltheessentialcharacteristics oftheexisting
typeofbilateralagreementstobenegotiated,includingin
particulartheuseofgrowthratesoflessthan6%inquotas
andtheoperationofthebasketexitsystem.TheCommission ,
doesnot^eelitnecessaryatthisstagefortheCommunity
topronouncednthequestionwhetherornotthetermsof''
thesuccessortotheMFAshouldbedifferentfromtheexisting
text.Thiscandedealtwithatalaterstageinthelightofthe

10-
Community 'sobjectives ,developments intheinterpretation
ofthepresent MFA,andthecourseofthenegotiations .
Duration ofvalidity ;suspensive clause
25.TheCommission believes thatbusinesspolicydecisions inthetextile
and ,clothing industries arebestmadeinconditions oflongerterm
stability oftheinternational trading environment .However,asking
foranexcessively longvalidity periodwouldgiverisetoproblems
withpartnercountries .Onbalance,therefore ,theCommission
recommends' thattheCommunity setasitsobjective toobtain a
successor arrangement totheMFAvalidforfiveyears.TheCommission
considers thatthisperiodshouldenabletheCommunity 'sindustryto.
makenewprogress initsrestructuring efforts.
TheCommission considers thattheCommunity 'sacceptance shouldbe
linkedtothesatisfactory outcomeofnegotiations inrespectof
theCommunity 'sbilateral agreements .
26.Inthelightoftheabove,theCommission invitestheCouncilto
.,adopttheattached Recommendation foraDecision .

ANSfï 1
SflfCTfD STPUCTURAL OTVELO^CNT :INTCXTIUS ANDCLOTHING
1»731'7Ai1"51976197719781979197V^ic h,t1980 i,ha*n-,
'I I !!//.1973,1979/1973*)|/'19'.'1980/1973
L"BL0T"S TE>T-I"848!•»«"JI-W1-5"1.5251.4571.415 (1.370)I. J-25/8
! > ' -
f'"1-°°0) ^°<h-1-"<>|1-204 1.146 1.094-1.055 1.011 1.002 (959)-317!-24,8
fiws tent.14.842 J14.483 ;13.78013.36013.01212.83312.594*)-2.248-15,1
Î ! ! '
cloth.15.708 j15.304 14.428 14.078 13.445 j13.467 j13.384O-2.324 |-14,8
; j■ j 1– 1^–:
VALUEADDED text.' 10.986*)11.872 _10.923 ;11.655 11.344 j■11.519*)12.468*)+1.482 +13,5
(»illCUA,CONSTANT I ; i I | ;
PRICES1973) cloth.I5.562*)j5.963f5.928 j5.870 j5.931 !.6.188*)|-6.611*)]+1.049♦18,9
VALUEADDEDPERPERS0Ntext,5.946*)6.768 6.705 7.409 7.439 7.906*)8.811*)+2.865 +48,2
(EUA,CONSTANT I ' |
PRICES1973) cloth.I4-361*)4.953 5.173 j5.366 5.622 6.121*)6.598*)j+2.237 I+51,3
VALUEADDED text.10.986+)12.711*)12.534 14.090 14.581 15.570*)17.400*).+6.414 +58,4(•illEUA,CURRENT I .
PR1CES cloth.I5.562*)6.385 6.769 7.126 7.606 8.300*)9.190*)|+3.628'+65,2
VALUEADDEDPERPERSONtext.5.946*)7.249*)7.675 8.955 9.721*)«¡.832*)j12.470*)|+6.524 +109,7(EUA,CURRENT I ■ I
p*KrS- cloth.A.361*)5.374+)6.0086.5607.264*)8.189*)9.077*)+4.716j♦108,1
INVESTMENT 2) text.1.271 1.181 905 919 835 850*)870*)
(LLLLEUA,
1970PRICES) cloth.!292 240 201 215 217 230*)240*)
*)est1■at«.
Source:responsetotheGATTTextilesQuestionnaire andEURCSTAT.
1)Onlyenterprises of20ormoreemployees included.
2)Subjecttoslightrevision .

. ANNEXEII
psc.'CIPALSS S'TVPI.OISs.'."5LSS r*jTSXTXLSz?:ELACCÎ^CTIOÎ~.T."197■*~T*»•*•1-AtA–.1i–
Unite:1CCOTrv.r.
?.--gior.y.
?»ardreorier.tale
^as-"id.ar.ds
^iV'r^n
.lor'hemIre?and
Klir.ireoccidentale
Cb«?rfrïrkon
^crd-Pas-de-Calais
foîin«
:0:;r.ir^-!';:-berside
-v?.r1jsse1
Pic:or.;e
.■0rthV.'ost
Vntçrfranken
l>bria
Sc:.vraw«n
Alsace
Irl-mds 1
DetEOld
X'eser-jSxs
Scotland
.■Uii-Pyrenoeg
1ii-Ror.agna
;■iedcrsayern
Ehonç-Aloes
rreibur*
Picardie
Hair.aut
Kassel
Lorraine
Frrili-Venezia-Giula
Basilicata
CorrjnunauteeuropéennePartdu
texi+ha*
dsscct.
s0ccr.i•
157?
20,1
11i-si**
125
aO,p
1QP
1",2r,«
1:,S
14.7
13,3
13,5
13,0
12,3
12,5
11,9
11,9
11.8
11,5
11,5
10.9
10,9
10,5
10,3
9,9
9,9
9,2
9.2
9,0
8.8
8,5
8.5
8,4
8.3
~8,1
7.9
7,9
7,8
7.6
7.43»nUl
1973
*09
111,3
:.D
28,2
28.0
35,2
110,2
64,9
3,1
.53,7
115,6
29,5
183,1
19.1
86,2,
1Β
128,0
1.4
6,8
26,9
25.8
23,0
IID
î.'3
71,4
11,3
6.0
16.9
31,6
5.5
75,3
ND
23,0
14,6
ND
32,6
11,6
1.1
2113,6Textile
Enoloi
1?77
30,7
105,5
47.0
21,5
22.5
2?,9
88.1
52.3
4,1
45.6
94.7
25.4
162,7
13.7
70,4
33.0
110,2-
0,9
6.7
24.3
20.2
21.1
10,6
16.4
57,6
s10,7-
4.8
15.1
25,6
3.9
51.4
24.5
15.8
9.5
11.2
25.3
8.6
1.7
1705,6Perte
d'emploi
73-77Erauloi
*»>*TT
-36,3
-5,2-15,7*)
-23,3
-19,6
-17,9
-20,1
-13,6
+?2,2
-"î*1
-18,1
-10,5
-13,5-28,3
-18,3
-23,5»)
-13,9
-35,7
-1,5
-U,2
-21,7
-3,3
-23,5*)-15,2*)
-19,3
-5J
-20,0
-10,7
-19,0
-29,1
-31,7
-15,7.
-31,3
-34,9
-24,7
-22,4
-25,9
♦54,5■
-19,3I
16.1
■29,4
:id
21.2
11,0
16.3
32.7
12,6
!C,7
4"-,7
3,3
91,4
6.0
39.4
ND
60,3
25,6
.7,0
8,2
7,9
17.1
•V3
N3
32.2
20.3
15,3
8,7
31.3
10.5
25.4
NO
7,2
6,9-
ÎID
10,0-
4,9
2.1
1507,1•Habìllesent
Eaolol
To--»
12,9
2?,4
1C,2
13.1
9,5
■16,1
29,9
37.2
14,0
49,0
3?,1
3,7
74,4
3,Δ
3&,9
14.5
'53,5
24,4
6,8
7.1
7,6
13.2
22,1
13.3
31,1
'16,0
16,1
8.8
27.4
10,7
22.6
5.2
8,0
4.3
7,3
9.9
4,5
1,9
127G.ÔPerta
d'erploi
73-77
-19.9
-12,2
-14,6
-11,6
-1,2
-8,6
_1-I-
+n,i
-3,4
-12,5
-2,6
-18,6
-43,3
-5,3
-23,9*)
-H,3
-4,7
"2,9
-13,4-3,8
-22,3
-23,9*)
-16,1*)
-3,4
-21,2
+5,2
+1,1
-13,8
+1,9
-11,0■
-12,2*)
+ii,i
-30,4
-21,5
-1,0
-8,2
-9,5
-15,7Textile
Esplol
19T3ethabillement
Stploi
1977Perte
d'esploi
73-77
54,3 43,6·-12,2
140,7 M34.9-4,1
:;D 57,2-14,8*)
¿9,4 39,6-19,8
39,0 32,0-17,9
51,5, ^-12,6
V-2,9 .113,0-17,4
109,3 90,0-13,0
15,7-18,1+15,3
104,4 94,6-9,4
150,3 133,3-16,5
33,3 .30,1-9,6
279,5 .237,1-15,2
25,1 17,1-31,9
125,6 107,3-14,6
ÍE 47,5-23,7*)
133,3 ■163,7-13,1
27,0 25,3-6,313,8' 13,5-2,2
37,1 31,9-14,0
33,7 27,8-17,5
40,1 34,3-14,5
ND 22,7-23,7*)
ND 29,7-15,8*)
103,6 23,7-14,4
31,6 26,7-.15,5
21,3 20,9-1,9
25,6 23,9-5,6
63,4 53,0-16,4
16,0 14,5-3,8
100,7 74,0-26,5
ND 29,7-14,8»)
30,2 23,8-21,2
21,5 -14,3-33,5
ΊΠ) 18,5-23,0*)
42,6 35,2-17,4
16,5 13,1-20,6
3,2 3,6+12,5
3620,7 2975,6-17,81977
A ■^h3?»2Ç»
1979
7»
4,96,0
3,3■2,6
1,01,38,5 "7,0
4,2 .5*9
3,01,3
5,07,3
3,23,6
5.15,7
2,43,5
4,2 ·3,6
5,05,5
2,03,0
3,5'2,9
2,83,4
3,32,6
5,44,4
3,13,5
6,24,8
2,63,0
2,82,3
9,2 KD
2,5 .1,9
-2,7-
6,5 5,4
7,06,8
2,93,3
4,7'5,2
2,43,6
2,92,1
4,35,1
2,31,8
4,16,3
6,89,7
1,91,3
2,7 .4,5
1,62,4
5,910,0
4,2
»)PourlaR.F.A.leschiffres1973desRegie.-vngabezirkcn'étantpasdisponibles,lespourcentagesdepertessontcalculésauniveaudesLander
)Lescirconscriptions retenuesson.lesrégionsII"'JTSjlechoixd'undécoupageplusfincoir.nelesrégionsIIINUTScodifieraitsensiblenentdanscertainscas
l'importancedur.ecteurtextiledanslesrégionsret-snunaetl'ordredanslequellesrégions30ntplacéesdanscetablca;. -
)Léor^gignarouiignéecsontcolledontleP.1.3.part^*.»en1977estinférieuràlamoyennecssmu.iautaire(C2E10»100)

IA*r\+tçIII
EEC
TRFNDSINPRODUCTION ^CONSUMPTION ,EMPLOYMENT
-ANDEXTERNAL TRACE(1973=100)
INDEXES ^
1973
1974
1975
1976
1977
1978
1979
1930PRODUCTION
TEXTILES
100,0
95,6
88.3
96,9
94,2
91,5
96.4
95,3'CLOTHING
100,0
94,3
94,6
99.5
97.6
94,0
98,0
93,9*CONSUMPTION
,CLOTHING
*10monthsextrapolated100.0
100.5
100.7
102.1
102.8
104.6
106,6IMPORTS
EXTRA
Τ+CEXPORTS
EXTRA
Τ+CEMPLOYMENT
Τ+C
100,0 100,0 100,0
131,5 109,3 94,7
140,6 97,1 88,8
175,4 112,0 85,4
161,4 116,5 82,6
172,6 115,1 79,0
205,4 115,9 77,4
212,2<74,6)
*

ANNEXIV
20.03.1981
JJL.l.ΝDSIN C0MMUΝUΤYIMPOR τ_s
Unité:1.000Tonnes
SOURCE 1973 1974 1975 1976 1977 1977 !1978I19791980
EXTRA 826 1.086 1.161 1.449 1.333''1.333 1.426 !1.697 1.753
INDUSTRIALISED COUNTRIES 254 334 306 356 332 331 354 Í472 526
COUNTRIES COVEREDBYTEXTILEPOLICY 572 752-8551.093 1.001 1.001 1.072-1.225 1.227
ofwhich I
AGREEMENT COUNTRIES n.d.n.d.n.d. 651 598 598 598 I697 709
PREFERENTIAL COUNTRIES (including ACP)n.d..n.d.n.d.n.d. 301 301 366 !419
i395
CHANGE1974/19731975/19741976/19751977/19761977/1973I ι
|1978/1977j1979/19781980/19791980/1977
EXTRA+31,5 +6,9+24,8 8,0"+61,4 +7,0+19,0 +3,3 +31,5
INDUSTRIALISED COUNTRIES+31,5-8,4 +16,3-6,8+30,7 +6,6 +33,3 +11,4 +58,9
COUNTRIES COVEREDBYTEXTILEPOLICY +31,5.+13,7 +27,8-8,4+75,0 +'7,1 +14,3_+22,6ofwhich'
A6REEMENT COUNTRIES n.d.n.d.n.d.-8,2 +16,5 +1,7+18,6
PREFERENTIAL COUNTRIES(including ACP) n.d.n.d.n.d.n.d.+21,6 +14,5-5,7+31,2
PENETRATI ONLEVEL«
SOURCE 1973 1974 1975 1976 1977 1978 1979
EXTRA 20,932,9 34,6 37,4 38-,039,4 "41,3
INDUSTRIALISED COUNTRIES n.d.n.d.n.d.n.d. 8,2 8,810,3
COUNTRIES COVEREDBYTEXTILEPOLICY n.d.n.d.n.d.n.d.29,7 30,6 31,0
ofwhich 1
AGREEMENT COUNTRIES n.d.n.d.n.d.n.d.I17,5 16,9 17,6
PREFERENTIAL COUNTRIES (including ACP).n.d.n.d.n.d.n.d.
I9,010,6 10,8
n.d.notavailable.
Thepenetrationtevetiscalculatedfromimportsofproductscorrespondingtothose
coveredinthefiFsttwotablesonthispage,importsofsixcategoriesofsemi-rawusedtodeterminethemarket.Theimportstakenintoconsideration arelessthanthose
materialshavingbeeneliminated (Cat.41-42-46-51-54-55).

TRENOS INTRADE 1977-1979 '
Unité :1.000 Tonnes
SOURCE YEAR IMPORTS 'EXPORTS BALANCE
EXTRA 19771.}331.124 -209
1978 1.426 1.111 -315
1979 1.697 1.118-579
INDUSTRIALISED COUNTRIES1977 "331 519 +188
1978 353 520 +167
1979 472 539 + 67
COUNTRIES COVERED BYTHE TEXTILE 1977 1.001 605 -396
POLICY1978 1.072 591 -481 .
1979 1.225 580-645
AGREEMENT COUNTRIES 1977 598 357-441
- 1978 598 169-429
1979 697 171-526
PREFERENTIAL COUNTRIES 1977 301 208- 93
1978 366 203-163
.1979 41? 205-214
ofwhich
A.C. P. 1977 17 73 + 56
1978 16 ?4 + 58
; . ν1979 20 60 + 40
OTHER PREFERENTIAL COUNTRIES *" 1977 284 135-149
1978 350 129-221
1979 399 145-25-4 '
SPAIN -PORTUGAL -GREECE -MOROCCO ^TUNISIA -MALTE -CYPRUS "EGYPT (solely forcotton yarn category 1).

ÀNN'EXEVî
TRENDSINIMPORTS OFTEXTILE PRODUCTS INTOTHEEECBETWEEN 1976,THEREFERENCE 'YEARFORFIXING
THEOBJECTIVES OFTHETEXTILES POLICY,.AND1980CMFAPRODUCTS .GROUPSI-V)
Unité:1.000T
t
ZONES 1976 1977 1978 19791980!Variation 1979-1980
in*Averageannual j
80-76 ,in%.
Extra-EEC 1.4491.333 1.4261.697 1.753 ♦3,3 ♦4,9 I
Lowcostcountries 1.0931.001 1.0721.225 1.227 ♦0,1 ♦2,9
ofwhi.ch
Countries withagreement 651 598 598697 709, ♦W ♦2,2
Preferential countries
(including ACP).-
n.d.301 366 419 395 -5,7 n.d.j
Industrialised countries 356
/332 354472 526 ♦11Λ ♦10,3

ANNEXVII
TheCommunity'sBilateralAgreements
1.TheCommission doesnotconsiderthepresentcommunication tobe
theappropriate placeforafulldiscussionofpolicyregarding
thebilateralagreements .Thefollowingbriefcommentsconcern
onlymatterswhicharecentraltothecontextoftheMFAnego­
tiations.TheCommissionwilltransmitamoredetailedcommunication
!
concerningthebilateralagreements whennecessary.
TheCommunity'sinternalsystem -■
Globalisation
2.TheCommissionconsidersthattheCommunity'ssystemofCommunity
globalceilingsforGroupIproductsshouldremaininforceasan
internalsystem.TheCommissionhasproposedmodifications tothe
systemasfarasconcernscountrieswithPreferential Agreementswith
theCommunity C1).TheCommission ,wi11alsoproposeinduecourse
anychangesinthepresentinternalsystemwhichmaybedesirable,
particularly asregardspossiblemodifications inthecomposition
ofGroupInecessitated bydevelopments inthesensitivity of
theproductsconcerned.rjrthermore ,.separateceilingsshouldbsreserved
foroutwardprocessedproducts.
s2on_of_Commun|t^_guotas_arnon2theMemberStates.
3.Oneoftheprincipalsourcesoffrictionwithsuppliercountries-
inrespectofthebilateralagreementshasbeentherigidityof
applicationofthesubdivisionofCommunityquotasamongtheMember
States.Thesolutionmostinconformitywiththeprincipleofa
commonmarketwouldconsistinunifiedCommunityquotas.Although
suchanapproachmaybedifficulttoenvisageinpresentcircum­
stances,theCommissionconsidersthatinthesuccessorstothe
presentbilateralagreements somedegreeofautomaticandgradually
increasingflexibilityinthisrespectneedstobeprovidedforandis
indeednecessary;suchachangewillgreatlyfacilitatethenegotiations
andwillalsohelptoachieveatruecommonmarket,whichisanecessary
conditionfortheindustry'srestructuring .
(1)COM(81)53Finalof11/3/1981.

-2-
Provisionof'thebilateralagreements
Growth_rates
4.Underthepresentbilateralagreements,importgrowthratesvary
tosomeextentaccordingtothesensitivity oftheproductsconcerned
andthemarketsharesofthevarioussuppliercountries.TheCommission
swillseektodevelopdifferentiation inthebilateralcontextand
willcontinuetodefendtheviewthatgrowthratesbelow6%are
justifiedundertheMFAwheretheCommunityconsidersthemnecessary
forthe"orderlyandequitabledevelopment oftrade"(Article 1para2
oftheMFA),especiallyinviewoftheextremelylowgrowthofconsump­
tionintheCommunity.
Basket_extractor_mechan_ism
5.TheCommission considersthatthebasketextractor mechanism has
proveditsworthasaninstrumentforintroducing newquotasin
agreementwithsuppliercountries.TheCommissiontakestheviewthat
suchamechanismwillcontinuetobenecessaryinthesuccessor
bilateralagreements .TheCommissionalsoseestheneedforacom­
plementarysystemtoenableunder-utilised quotastobeeliminated?
Accessto,themarketj_oJ^sugglLijr_count Hes
6.TheCommissionintendstoseektoobtainbetteraccesstothemarkets
ofsuppliercountries,especiallythoseofstate-trading andnewly
industrialised countries,inthecourseoftherenegotiation ofthe
bilateralagreements .
-V. /
OutwardProcessing
7.TheCommissionrecommendsthatoutwardprocessedproductsshouldbe
subjecttoseparatetreatment.

Recommendation foraCouncilDecision authorising the
Commission tonegotiate therenewaloftheArrangement
regarding International TradeinTextiles
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
/
HavingregardtotheTreatyestablishing theEuropean Economic
Community and,inparticular Article 113thereof,
Havingregardtotherecommendation fromtheCommission ,
Whereas^SS^otiations havetobeconductedbetweenthepartiestothe
Arrangement regarding International TradeinTextiles,forits
possible renewalafter31.12.1981 ;
WhereastheCommunity shouldparticipate inthesenegotiations ,
HASDECIDED ASFOLLOWS : -
Article 1
TheCommission isauthorised tonegotiate therenewaloftheArrangement
regarding International TradeinTextiles .
Article 2
TheCommission shallconductthesenegotiations inconsultation withthe
special Committee established underArticle 113aridonthebasisofthe
guidelines setoutintheAnnexhereto. -•
DoneatBrussels, ForthePresident
I

DIRECTIVES FORNEGOTIATIONS1t
Themainobjective fortheCommunity istoachievetherenewalofthe
MFAmodifiedifnecessary toachievetheresults setoutbelow.
I
1.AffirmtheCommunity 'scommitment totheobjectives oftheMFAas
definedinitsArt.1paras2and3.
2.Safeguard theCommunity'srighttomaintain broadlyitssystemofbilateral
agreements . j
3.Affirmthe-principle thatgrowthrateslowerthan6%arepermissible under
theMFAwhennecessary forthe"orderly andequitable development oftrade
whileensuringtheavoidanceofdisruptive effects"(Art1pap^j2MFA),
andthatgrowthratesshouldtakeaccountofconsumption trendsonthe
Community market.
4.EnsurethattheCommunity canachieve ameasureof differentiation
betweenthetreatment ofthemostcompetitive anddeveloped suppliers
ontheonehandandtheleastdeveloped andcompetitive ontheother.
Oneinstrument tofacilitatethisprocssswouldbeoutwardprocessing arrangements .
5.Seekrecognition oftheprinciple that100%ofgoodstheoriginofwhich
isfraudulently misrepresented mustbededucted fromthequotaofthetrue
countryoforigin.
6.Seekrecognition oftheprinciple thatmeasures tofacilitate theorderly
andequitable development -oftrade,suchastheMFA,shouldfurthc-rtheeconomic
andsocialdevelopment ofdeveloping countries andbenefitthepopulations
concerned .
7.Maintain theexistingposition regarding priceclauses.
8.'Maintain existing arrangements regarding handloom andfolklore products .
9.Obtainanarrangement of5yearsduration .
10.Affirmthattheacceptance bytheCommunity ofasuccessor Arrangement
willbeconditional upontheconclusion ofsatisfactory bilateral agreements .