S COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 482 final 
Brussels, 2 December 1991 
m%m«am 
B:- :-- • 
Proposal for a 
pnMNPIl REGULAT I QN__1EECJ, 
prolonging the measures taken under the agreements 
between the European Economic Community and the United 
States of America for the conclusion of negotiations 
under GATT Article XXIV.6 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
Subject : The 1987 bilateral agreement between the European 
Economic Community and the United States of 
America 
1. In 1987 an "Agreement for the Conclusion of 
Negotiations between the European Economic Community 
and the United States of America under GATT Article 
XXIV.6" was entered into between the two parties by 
which they agreed upon a number of rights and 
obligations <1). Consultations between the two parties 
as foreseen in the Agreement subsequently took place in 
an attempt to find a solution to the disagreement 
existing between the Community and the United States, 
on whether or not new actions, if any, might be 
appropriate. 
2. It was not possible to conclude these consultations by 
the end of 1990, notably in view of the prolongation of 
the Uruguay Round, and therefore in respect of those 
rights and obligations which were foreseen to expire on 
that date an agreement was reached between the 
Community and the United States to extend these until 
31 December 1991. The Community implemented this 
prolongation by a Decision by the Council to approve an 
Exchange of Letters between the Community and United 
States complementing the Agreement (2). 
3. As the negotiations under the Uruguay Round will 
continue into 1992, a resolution of this issue is still 
not possible. The fact that the present Decision is 
limited in time means that certain measures cannot be 
applied after the end of 1991, without a legal basis in 
the form of a Council instrument. 
4. The Commission's proposal for a Council Regulation 
reflects its view that on the one hand it is desirable 
to continue to apply these measures, in particular to 
avoid a worsening of the disagreement on this issue, 
and on the other hand that it is preferable to do so on 
an autonomous basis. 
5. Given that the measures are being retained 
autonomously, the appropriate legal instrument is a 
Council Regulation. 
(1) 0J No L 98, 10.A.1987, p. 1 
(2) 0J No L 17, 23.1.1991, p.17 
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6. It is proposed that the draft Regulation shall apply 
from 1 January 1992 for a year and it is therefore 
suggested that it is adopted in advance of that date in 
order to avoid any practical problems of application, 
in particular in respect of the reduction of certain 
rates of duties in the Combined Nomenclature 
-Ii-
: proposal for a 
COUNCIL REGULATION (EEC) NO /91 
of 
prolonging the measures taken under the agreements 
between the European Economic Community and the United 
States of America for the conclusion of negotiations 
under GATT Article XXIV.6 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 113 
thereof, 
Having regard to the proposal from the Commission, 
Whereas by an Agreement between the European Economic 
Community and the United States of America for the 
conclusion of negotiations under GATT Article XXIV.6 (1) 
which was extended by an Exchange of Letters (2) 
complementing that Agreement until 31 December 1991, the 
Community agreed to take certain measures; 
Whereas it is considered appropriate that the Community 
shall apply the same measures until 31 December 1992, 
HAS ADOPTED THIS REGULATION 
(1) OJ No L 98, 10.4.1987, p. 1 
HAS ADOPTED THIS REGULATION 
Article 1 
The measures referred to in the Exchange of Letters 
complementing the Agreement between the European Economic 
Community and the United States of America for the 
conclusion of negotiations under GATT Article XXIV.6 
shall be applied by the Community until 31 December 1992. 
Article 2 
This Regulation shall enter into force on the day of its 
publication in the Official Journal of the European 
Communities. 
It shall apply with effect from 1 January 1992. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
Done at Brussels, 
For the Council 
The President 
T 
FINANCIAL RECORD 
1. Budget line concerned : Chap. 12 Art. 120 
Title of the measure concerned : Draft proposal for a 
Council Regulation (EEC) prolonging the measures taken 
under the agreements between the European Economic 
Community and the United States of America for the 
conclusion of negotiations under GATT Article XXIV.6 
3. Legal basis : Art. 113 of the Treaty 
Objective : To ensure the continued application of the 
reduction of certain autonomous duties in the Combined 
Nomenclature by virtue of "Agreement for the Conclusion 
of Negotiations between the European Economic Community 
and the United States of America under GATT Article 
XXIV.6" on an autonomous basis 
5. Cost of this measure : No significant change in the 
situation as compared with the previous year 
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IMPACT ON COMPETITIVENESS AND EMPLOYMENT RECORD 
The present draft proposal will not alter the current 
situation in respect of competitiveness and employment. On 
the contrary, without these measures the United States of 
America might consider retaliating against Community 
exporters for a number of sensitive products. 

ISSN 0254-1475 
COM(91) 482 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-91-541-EN-C 
ISBN 92-77-78042-8 
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