EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 27.11.2006 
COM(2006) 730 final 
2006/0238 (ACC)   
Proposal for a 
COUNCIL DECISION 
on the signing and the provisional application of a bilateral agreement in the form of an 
Exchange of Letters between the Europe an Community and Ukraine concerning the 
extension and amendment of the Agreement between the European Community and 
Ukraine on trade in textile products 
(presented by the Commission) 
 
EN 2   EN EXPLANATORY MEMORANDUM  
1) CONTEXT OF THE PROPOSAL  
 • Grounds for and objectives of the proposal  
The bilateral agreement on trade in textil e products between the European Community 
and Ukraine will expire on 31 December 2006. Ukraine may lack time to complete the process to accede the World Trade Organisati on (WTO) before that date. The proposal 
provides for an extension of the present textile agreement until 31 December 2007, 
with a tacit renewal for a period of one more year (31 December 2008). This will 
ensure legal certainty in trade in textile and clothing products until Ukraine joins the 
WTO.  
 • General context  
The bilateral agreement regulat ing trade in textiles with Ukraine has been in place 
since 1993 and has been amended on several occasions. The agreement, as amended, includes tariff commitments on the side of Ukraine (tariffs are equal to EU levels), a snapback clause in case of the non-respect of those tariff levels and a clause prohibiting 
the introduction of non-tariff barriers.  
Neither quantitative restrictions nor double- checking requirements  are currently in 
place and the proposed amendm ent ensures the continuation of the present open regime 
of trade in textile and clot hing products with Ukraine.  
 • Existing provisions in the area of the proposal  
OJ L 123, 17.5.1994; OJ L 94, 26.4.1995; OJ L 81, 30.3.1996; OJ L 337, 30.12.1999; 
OJ L 16, 18.1.2001; OJ L 75, 16.3.2002; OJ L 49, 22.2.2003; OJ L 65, 11.3.2005. 
 • Consistency with the other policies and objectives of the Union  
An extension of the bilateral agreement on trade in textile products will continue to 
provide legal certainty for operators on both sides and thereby ensu re smooth bilateral 
trade in textile products until WTO accession.  
Should Ukraine join the WTO before 31 December 2006 the need for the proposed 
amendment would lapse. 
2) CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT  
 • Consultation of interested parties  
 This Decision provides for the signature and the provisional application of an 
international trade agreement amending (and extending) an agreement that otherwise 
would have expired. No formal  consultation is necessary. 
 • Collection and use of expertise  
 There was no need for external expertise. 
 
EN 3   EN  • Impact assessment  
Impacts have been assessed in the course of the negotiations of the international 
agreement. 
It was therefore not necessary to conduct an impact assessment of this measure. 
3) LEGAL ELEMENTS OF THE PROPOSAL  
 • Summary of the proposed action  
The proposal provides for an extension of th e bilateral agre ement on trade in textiles 
between the European Community and Uk raine until 31 December 2007 with a tacit 
renewal for a further period of one year (until 31 December 2008), on the terms and 
conditions currently in place.  
There will be no particular negative e ffects or risks for developing countries. 
 • Legal basis  
Article 133 of the Treaty establishing the EC. 
 • Subsidiarity principle  
The proposal falls under the ex clusive competence of the Co mmunity. The subsidiarity 
principle therefore does not apply. 
 • Choice of instruments  
 Proposed instruments: decision. 
 Other means would not be adequate for the following reason(s). 
There are no other means available for the si gnature and the provisi onal application of 
an international agreement. 
4) BUDGETARY IMPLICATION  
 The proposal has no implication for the Community budget. 
 
 
 
EN 4   EN 2006/0238 (ACC) 
Proposal for a 
COUNCIL DECISION 
on the signing and the provisional application of a bilateral agreement in the form of an 
Exchange of Letters between the European  Community and Ukraine concerning the 
extension and amendment of the Agreement between the European Community and 
Ukraine on trade in textile products 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing th e European Community, and in particular 
Article 133 in conjunction with Article 300(2), fi rst sentence of the first subparagraph thereof, 
Having regard to the proposal from the Commission, Whereas: (1) The Commission has negotiated on behalf of  the Community an ag reement in the form 
of an Exchange of Letters between the European Community and Ukraine concerning the extension and amendment of the Agreement on trade in textile products with 
Ukraine. 
(2) Subject to its possible c onclusion at a later date, th e proposed agreement should be 
signed on behalf of the Community. 
(3) This bilateral agreement should be app lied on a provisional basis as of 1 January 2007, 
pending the completion of procedures requi red for its conclusion, subject to the 
reciprocal provisional ap plication by Ukraine, 
HAS DECIDED AS FOLLOWS:  
Article 1 
Subject to a possible conclusion at a later date, the Presiden t of the Council is hereby 
authorised to designate the person(s) empo wered to sign on behalf of the European 
Community the Agreement in the form of an Exchange of Letters between the European 
Community and Ukraine concerning the extensio n and amendment of the Agreement between 
the European Community and Ukraine on trad e in textile products, initialled on 5 May 1993, 
as last amended by an Agreement in the form of an Exchange of Le tters signed on 9 March 
2005. 
 
EN 5   EN Article 2 
The annexed Agreement in the form of an Exchange of Letters shall be applied on a 
provisional basis, pending it s formal conclusion and subjec t to reciprocal provisional 
application of that Agreement by Ukraine, from 1 January 2007. 
Article 3 
The Commission may, in accordance with the pro cedure referred to in Article 17 of Council 
Regulation (EEC) No 3030/93, of 12 October 1993, on common rules for imports of certain 
textile products from third countries1, adopt the measures foreseen in point 6 of the Exchange 
of Letters signed on 19 December 20002, consisting of reinstating the quota-regime applicable 
during the year 2000 in case of non-application by Ukraine of th e tariff rates described in 
paragraph 2.2 of the Exchange of Letters re ferred to in Article 1 of this Decision.  
Article 4 
This Decision shall be published in the Official Journal of the European Union.  
It shall enter into force on the day following its publication in the Official Journal . 
Done at Brussels,  
 For the Council 
 The President 
                                                 
1 OJ L 275, 8.11.1993, p. 1. Regulation last amended by Commission Regulation (EC) No 35/2006 of 12 
January 2006 (OJ L 7, 12.1.2006, p. 8). 
2 OJ L 16, 18.1.2001, p. 3. 
 
EN 6   EN ANNEX   
AGREEMENT in the form of an Exchange of Letters between the European 
Community and Ukraine, represented by the Government of Ukraine, concerning the extension and amendment of the Agreement between the European Community and Ukraine on trade in textile products 
A. Letter from the Council of the European Union  Sir, 
1. I have the honour to refer to the Agreement between the European Community and 
Ukraine on trade in textile products initial led on 5 May 1993, as last amended by the 
Agreement in the form of an Exchange of Letters signed on 9 March 2005 (hereafter 
referred to as the 'Agreement'). 
2. According to Article 20(1), the Agreemen t shall only apply until 31 December 2006. 
The European Community proposes to extend the duration of the Agreement, subject 
to the following amendments and conditions: 
2.1. The text of Article 20(1) shal l be replaced by the following:  
 'This Agreement shall enter into force on the first day of the month following the 
date on which the Parties notify each othe r of the completion of the procedures 
necessary for that purpose. It shall be applicable until 31 December 2007. Thereafter, 
the application of all the provisions of  this Agreement shall be extended 
automatically for a period of one more year up to 31 December 2008, unless either 
Party notifies the other at least six mont hs before 31 December 2007 that it does not 
agree with this extension.' 
2.2. The tariff rates applied by Ukraine to expor ts of EC origin of products of HS 
chapters 50-63 will not exceed the final rate s agreed in Appendix 7 of the Exchange 
of Letters between the European Community and Ukraine signed on 19 December 
2000. 
3. Should Ukraine become a Member of the World Trade Organisation (WTO) before 
the date of the expiry of the Agreement, the agreements and rules of the WTO shall 
be applied from the date of Ukraine's accession to the WTO.  
4. I should be obliged if you could kindly confirm the acceptance of your Government 
of the foregoing. Should this be the case, this  agreement in the form of an Exchange 
of Letters shall enter into force on the first day of the month following the day on which the Parties have notified each other th at the legal procedures  necessary to this 
end have been completed. In the meantime,  it shall be applied provisionally from 1 
January 2007 on the condition of reciprocity. 
Please accept, Sir, the assurance of my highest consideration. 
For the Council of the European Union 
 
EN 7   EN B.Letter from the Government of Ukraine  
Sir, 
I have the honour to acknowledge  receipt of your letter of  ….. which reads as follows: 
 
“ Sir, 1. I have the honour to refer to the Agreement between the European Community and 
Ukraine on trade in textile products initial led on 5 May 1993, as last amended by the 
Agreement in the form of an Exchange of Letters signed on 9 March 2005 (hereafter 
referred to as the 'Agreement'). 
2. According to Article 20(1), the Agreemen t shall only apply until 31 December 2006. 
The European Community proposes to extend the duration of the Agreement, subject 
to the following amendments and conditions: 
2.1. The text of Article 20(1) shal l be replaced by the following:  
 'This Agreement shall enter into force on the first day of the month following the 
date on which the Parties notify each othe r of the completion of the procedures 
necessary for that purpose. It shall be applicable until 31 December 2007. Thereafter, 
the application of all the provisions of  this Agreement shall be extended 
automatically for a period of one more year up to 31 December 2008, unless either 
Party notifies the other at least six mont hs before 31 December 2007 that it does not 
agree with this extension.' 
2.2. The tariff rates applied by Ukraine to expor ts of EC origin of products of HS 
chapters 50-63 will not exceed the final rate s agreed in Appendix 7 of the Exchange 
of Letters between the European Community and Ukraine signed on 19 December 2000. 
3. Should Ukraine become a Member of the World Trade Organisation (WTO) before 
the date of the expiry of the Agreement, the agreements and rules of the WTO shall 
be applied from the date of Ukraine's accession to the WTO.  
4. I should be obliged if you could kindly confirm the acceptance of your Government 
of the foregoing. Should this be the case, this  agreement in the form of an Exchange 
of Letters shall enter into force on the first day of the month following the day on which the Parties have notified each other th at the legal procedures  necessary to this 
end have been completed. In the meantime,  it shall be applied provisionally from 1 
January 2007 on the condition of reciprocity.” 
I have the honour to confirm that the Government  of Ukraine is in agr eement with the content 
of your letter. 
Please accept, Sir, the assurance of my highest consideration. 
For the Government of Ukraine