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DOCUMENTS "COM"
COM(76)431
Vol.1976/0129

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)431final.
Brussels,29July1976.
I
1
•' \
Proposalfora
COUNCILREGULATION
concludingtheAgreementbetweenthe
EuropeanEconomicCommunity
andthe
FederalRepublicofBrazil
ontrademtextilesproducts
(submittedtotheCouncilToytheCommission)
COM(76)431final.

EXPLANATORY STATEMENT
1. On18March 1975 »"theCouncil decided toauthorise the
Commission toopen negotiations with theFederal Republic ofBrazil
for theconclusion ofanAgreement ontrade intextile products .
2. Inconformity with this Council Decision andinconsultation with the
Art .113Committee ,theCommission negotiated with representatives
oftheBrazilian government during October andDecember 1975 an<l
January ,February andMarch 1976.Following these negotiations
adraft Agreement wasdrawn upand initialled bytheheads of
delegation on1April 1976 .
3. Inparticular ,thedraft Agreement provides restraint levels
forBrazilian exports ofcertain defined textiles products totheCommunity
and achecking system tobeoperated byCommunity authorities onimports
ofsuch products .TheCommunity measures relating tothechecking
system for theproducts inquestion were laid down inCommission
(1)Regulation (EEC)No.790/76of6April 1976 ,subsequently confirmed
inCouncil Regulation (EEC)NO.1169 /76of 17May1976 (2).
4. TheAgreement further provides that ,fortheproducts covered
bytheAgreement ,theCommunity shall suspend allquantitative restrictions
existing inthe Community andrefrain from invoking theprovisions of
Article 3oftheM.F.A. Sofar asquantitative restrictions onproducts
other than those covered bytheAgreement cireconcerned ,theAgreement
provides that ,unless justified under theprovisions ofthe GATT or
included inagreements negotiated ormeasures adopted pursuant to
Article 3oftheGeneva Arrangement -these shall besuspended atthe
latest by31March 1977 *
5» With theexception ofcotton grey cloth ,imports ofthetextile
products oovered bytheAgreement into theCommunity forimmediate
re–export orforre–export after processing ,arenotsubject tothe
quantitative limits established under theAgreement .
OJNo.L92of7.4.1976
OJNo.L131of20.5.1976

6. Ageneral consultation procedure ,which maybeinvoked "by
either party ,issetout irArticle 4oftheAgreement .Itmay "beused to
seek solutions toanyproblems arising between theparties astothe
application oftheAgreement .
7. Possibilities forcarry-over ,carry –forward andinter –category
flexibility areprovided intheAgreement ,inaccordance with the
requirements oftheGeneva Arrangement .
8. TheAgreement istoenter into force ,upon conclusion ,with
effect fx*om 1January 1976 .Itwill remain inforce until 31December 1977
9. IntheCommission 'sopinion ,theAgreement negotiated is
fully inconformity with theguidelines laid down bytheCouncil
ofMinisters and the Commission therefore proposes that the
Council adopt thedraft Regulation annexed hereto ,
concluding .theAgreement onbehalf ofthe fiommimi ty.
V
Vc
\\\

COUNCILREGULATION (EEC)No.
concludingtheAgreementbetweentheEuropeanEconomicCommunityand
theFederalRepublicofBrazilontradeintextilesproducts
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle113thereof,
Havingregardtotherecommendation fromtheCommission ,
WhereastheAgreementontradeintextileproductsnegotiatedbetweenthe
EuropeanEconomicCommunityandtheFederalRepublicofBrazilshouldbe
concluded,
HASADOPTEDTHISREGULATION :
Article1
TheAgreementbetweentheEuropeanEconomicCommunityandtheFederal
RepublicofBrazilontradeintextileproductsisherebyooncludedon
behalfoftheCommunity.
ThetextoftheAgreementisannexedtothisRegulation.
IArticle2
ThePresidentoftheCouncilshallnotifytheotherContractingPartyofthe
completionbyth9Comiauriityoftheproc&duresrequiredfortheentryinto
forceoftheAgreement(l)»
(l)ThedateofentryintoforceoftheAgreementwillbepublishedinthe
OfficialJournaloftheEuropeanCommunities .

Article 3
This Regulation shall enter into force onthethird dayfollowing
itspublication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States «
Done at Por the Council
The President

Draft
The Council ofthe European Communities
ofthe one part ,
TheGovernment ofthe Federal Republic ofBRAZIL
ofthe other part ,
desiring toensure the orderly and equitable development oftrade
intextiles between theEuropean Economic Community (hereinafter re­
ferred toas"theCommunity ")andBrazil ,
Having regard totheprovisions oftheArrangement regarding Inter­
national Trade inTextiles (hereinafter referred toas"the Geneva
Arrangement ")andinparticular Article k'thereof ,
Have decided ,inaspirit ofmutual co-operation andinconforr.ity
with theGeneva Arrangement ,toconclude this Agreement and tothis
have designated astheir Plehipotentiairi es :
COUNCIL OFTHE EUROPEAN COMMUNITIES
THE GOVERNMENT OFTHE FEDERAL REPUBLIC OFBRAZIL
VKG HAVE AGREED ASFOLLOWS :
Φ1 '

Article 1
The Parties recognise and confirm that ,subject tothe
provisions ofthis Agreement and without prejudice totheir
rights and obligations under theGeneral Agreement onTariffs
and Trade ,the conduct oftheir mutual trade intextiles shall
begoverned bytheprovisions oftheGeneva Arrangement .
!

Article 2
!• Inrespect ofthose categories oftextiles products which are set
outinAr.nex I,being textiles products originating inanddespatched
frcn Brazil ,andsubject tothesatisfactory operation ofthis Agreement ,
theCommunity shall notintroduce newquantitative restrictions ,shall
Euspcna theoperation ofanypreviously inforce ,andshall refrain from
invoking theprovisions ofArticle 3oftheGeneva Arrangement ,provided
th-.t exports totheCommunity ofsuch textiles products originatir ;<-in
ar.ddespatched from Brazil donotexceed theagreed quantitative limits#
2, The' Government ofBrazil shall establish quantitative limits on
exports totheCommunity inaccordance with Annex I,andundertakes to
tike theappropriate measures toensure that thequantitative limits shown
therein are not exceeded *
3o TheCommunity shall notobject totheaforementioned quantitative
lir.its "being exceeded intheevent ofadditional demand developing cn
themarket oftheCommunity ,ontheunderstanding that theadditional
cru^ntities shall "befixed "bycommon agreement "between "both Parties .
Quantities ofthequota shares setoutinAnnex Inottaken up
"byaKerr/terState oftheCommunity may "bere-allocated toanother Ke~ber
Z ainaccordance with the pi^ocedures inforce intheCommunity .The
Corjrjr.ity undertakes torespond within 4weeks ofitsreceipt toar.y
reruest made bytheBrazilian Government forsuch re-allocation »Itis
xir.dsrstood that anyre–allocation soeffected would notneed tobeccn-
fir.od within anylimits setinflexibility provisions established else-
wrere inthis Agreement «
5« Allother quantitative restrictions which have been notified by
theCommunity totheTextiles Surveillance Body under Article 2(l)of
the Ger.eva Arrangement ,shall ,unless justified under theprovisions of
GAT!orincluded inagreements negotiated ormeasures adopted pursuant
totheprovisions ofArticle 3oftheGeneva Arrangement ,beevv.pended
ascoon aspossible after theconclusion ofthe Agreeir ?ntand inany case
by31Karch 1977#
c• The Parties shall co-operate inimplementing themeasures necessary
forthepurpose ofthis Article *
\\\ /JU,

Article 3
1. #ith theexception ofCategory Nc ...2(cotton cloth ,unbleached
orbleached ),imports into theCommunity ofthetextile products sho>m
inhnnex Iwiiich are forimmediate rs-exncrt orforinv /ardprocessing
andsubsequent re-export outside theCommunity shall rotbesubject
toquantitative limits established under this Agreement ,provided they
are entered assuch under anadministrative system ofcontrol inforce
for this purpose within theCommunity «
a-cortain that imports described mparagraph 1above have been retai­
ned forconsumption within the Community ,the latter will notify the
Government ofBrazil onaquarterly basis ofthe amounts involved .
Brazil shall insuch cases and atthe request ofthe Community ,charre
such amounts against the quantitative limit orlimits inquestion for
the current calendar year orfor thenext following year -
3- Inany case where the competent authorities within the Community
ascertain under anadministrative system ofcontrol inforce that
imports oftextiles products shown inAnnex Ihave been charged against
quantitative limits established therein butsubsequently re-exported
outside the Community ,the competent authority concerned will inform
the Brazilian authorities on aquarterly basis ofthe quantities which
shall not becharged tothe quantitative limits .2. Inanycase where thecompetent authorities within theCommunity
ψ

Article4
1*ThePartiesshallenterpromptlyintoconsultations witheachother,
attherequestofeitherandinconformitywiththeprovisionsofthe
GenevaArrangement ,onanyproblemsarisingfromtheapplication ofthis
Agreement#Consultations heldvoidertheprovisionsofthisArticleshall
"beapproached "bybothPartiesinaspiritofcompromiseandwithaviewto
theconciliation ofdifferencesexistingbetweenthem#
2#ThePartiesshallconsultassoonaspossiblewithin30daysfollowing
therequestandwillmaketheirbesteffortstocompletesuchconsultations
within30daysoftheircommencement#
3.IntheeventthatthePartiesareunable,withinareasonableperiod
oftine,toreachasatisfactory solutionduringtheconsultations provided
forinthisarticle,eitherofthePartiesmayreferthemattertothe
TextilesSurveillance BodyinaccordancewithArticle11(4)oftheGeneva
Arrangement# ThePartychoosingtoadoptsuchacourseofactionshall
notifytheotherofitsintention#

Article5
If,havingregardtotheprovisionsoftheGenevaArrangement ,eitb
Partyconsidersthatitisbeingplacedinaninequitablepositionin
respectoftradeintextilesascomparedwithathirdcountry,thatParty
v.zyseekconsultations withtheotherwithaviewtotalcingappropriate
remedialaction#Au.,

Artide 6
1# Portions ofanyquantitative limit shown inAnnex Iwhich are r.ot
used during anycalendar year may "becarried over andadded tothe corres­
ponding quantitative limit inthefollowing year ,within alimit oflCf!
ofthe latter#
2« V7ithin alimit oflOfoofeach ofthequantitative limits shown in
Annex I',advance deliveries shall "beauthorised from thecorresponding
quantitative limit established forthefollowing year .Amounts delivered
inadvance shall bededucted from thequantitaiva limits fortheproducts
inrrucstien forthefollowing year .
3# Within anyonecalendar year ,unused portions ofquantitative lir.its
shov.T. inAnnex Iinrespect ofanyregion oftheCommunity market may be
transferred toanother quantitative limit established forthat same region
cftheCommunity market within aceiling of,7$oftherecipient quantita­
tive limit#
Thepreceding flexibility provisions shall not ,inanygiven year ,
recult inaquantitative limit foranycategory being exceeded byizore then
15f:ofthequantitative limit forthat category forthat year#
•• Theflexibility provisions contained inthis Article mayonly "beap­
plied byBrazil following written notification totheCommunity bythe
Brazilian authorities#

Article7
Brazilshallendeavourtoensurethatexportsofalltextiles
roductsforwhichquantitative limitsareshowninAnnexIarespaced
utasevenlyaspossibleovereachcalendaryear,dueaccountbeing
a1<en,inparticular,ofseasonalfactors#
Wt4.N
I

Article 8
TheParties shall exchange alluseful information concerning
■t'r.Firmutual trade intextiles inorder toensure the euccecEful
icple-entation ofthis Agreement *
Λ
»

Article 9
The quantitative limits shown inAnnex Ishall beadminis­
tered under asystem ofdouble control ,the details ofwhich are
set but inAnnex IItothis Agreement .
\\

Article 10
1. The Parties shall take allpossible measures toensure
that traditional channels and methods oftrade between them
are n^aintained .
2. Should either Party inform theother that theapplication
ofthis Agreement hasgiven rise todifficulties regarding the
maintenance ofexisting commercial relations between importers
intheCommunity and their suppliers inBrazil ,the Parties will
consult together inaccordance with theprocedures set out in
Article above .
\ • Ål*~s
r

Article 11
This Agreement shall apply totheterritories where the
Treaty establishing theEuropean Economic Community applies ,
 
ontheconditions established inthe said Treaty ,and tothe
territory ofthe .Federal Republic ofBrazil .
,I 4 .

Article 12
1. This Agreement shall enter into force onthe first day of
themonth following the date onwhich theParties have notified
each other ofthe completion ofthe procedures necessary for the
purpose .Itshall remain inforce until 31December 1977 *
2e This Agreement shall have effect from 1January 1976 .
3» Either Party may atany time propose modifications tothis
Agreement ordenounce itprovided that notice isgiven atleast
120days before theexpiry ofanytwelve-month period ;inthe
latter event theAgreement will come tQanendattheexpiry of
thesaid twelve-month period .
k, TneAnnexes tothis Agreement shall form anintegral part
tl-»reof .
, ι4

Article 13
This Agreement shall bedrawn upintwo copies inthe
Danish ,Dutch ,English ,French ,German ,Italian andPortuguese
languages ,each ofthese texts being equally authentic *

Products for which Brazil will exercise restraint towards
the whole Community from the entry into force ofthis Agreement .
TheCommunity hereby notifies Brazil that thequantitative limits
for the textile products listed below will beallocated between
the Member States asfollows :
I
I
I  Product category Member iI
Quantitative limits (metric tons ):
C^J
::«-s«r orsub-category State 1 19 76 1977 I
1 55.05I
FRG 11.175 11.552
!
i ■I
II 'Cotton yarn ,F
I
BNL
UK
Irl
DK
EEC2.830
3.839
6.732
452
1.113
359
26.5003.370
4.162
6.7C6
678
1.119
443
23.090
2 ex55.091
jFRG 6.700 6.786
Vioven fabrics ofcotton .F
T1.396
3.337
2.396
830
200
141
i
15.000
i1.51$
3.3Ô1 '
2.423
977
203
157
15.450
Junbleached and bleachedJ.
BNL
UK
Irl
DK
EEC
3 ex55.09 FRG 618 I 632
II
ιWoven fabrics ofcotton ,
other than unbleached
and bleachedF
I
BNL
UK
Irl
DK
EEC225
510
553
364
500
80
2.8502t,0
523
556
411
t:r.1
^66 !
I
3.021 j
i
* 62.02 FRG 3.900 3.920
i
IBed linen ,table linen ,
toilet linen and
kitchen linen ofcottonF
I
BNL
UK
Irl
DK
EEC360
340
400
740
110
150
6.000432 !
406 ;
464
660
111
167
6.360

ANNEX II
Asagreed between theParties inArticle 9oftheAgreement ,the ad­
ministration oftextiles imports from BRAZIL will bebased onasystec
ofdouble checking .Thedetails ofthis system have been agreed between
the Parties and are set out below .
will
The competent authorities within theCommunity fautoraatically andwithout
delay ,Accept imports oftextile products onsubmission oftheimporter' s
application together with theoriginal export certificate .The competent
authorities within theCommunity shall beentitled torequire the pre­
sentation ofanexport certificate inrespect ofgoods originating in
35AZIL ofthe categories shown inAnnex I.
These exoort certificates will bevalidated bytheBrazilian authorities
uotothetotal amount oftheagreed ceilings .
i
The export certificates issued bytheBrazilian authorities shall be
applicable totheproducts shown inAnnex I.
The export certificate must specify orcontain :
1.destination within theCommunity ;
2.sériai number ;
Z*importer 'sname and address ;
k,exporter 'sname andaddress ;
fr.net .weight (inkilograms ormetric tons )andvalue ;
6.category anddescription ofproduct ;
7#certification bytheBrazilian authorities that thequantity
hasbeen debited against theagreed ceiling for exports to
theCommunity or,where appropriate ,isforimmediate re-export
orforinward-processing andsubsequent re-export outside the
Community .
•«•/••«

r:::zvn
2-
ihecompetentauthoritieswithintheCommunitywillnotraisediffi­
cultiesintheeventofadiscrepancy "betweentheweightindicated
intheexportcertificateandtheshipmentorimportweightprovided
itiswithinreasonablelimits,whiletheBrazilianauthorities ,for
theirpart,willendeavourtokeepamydiscrepancies toan.iniiran.
Intheevcr.toftotalorpartialwithdrawalofanexportcertificate
theBrazilianauthoritieswillnotifythecompetentauthoritieswithin
theCommunityofsuchtotalorpartialwithdrawal.Theauthorities of
theT'smbcrStatesoftheCommunitywilltaketheappropriateaeasures
inaccordancewiththeirexistingadministrative provisions.
TheBrazilianauthoritieswillforwardtothecompetentauthorities
•.sithintheCommunity,viatheRepresentations oftheMemberlitatesof
theCorr^unityanddirectlytotheCommission,quarterlyreturnscho
thetotalnetweightinmetrictonscoveredbytheexportcertificates
issuedagainstthequantitative limitsforexportstotheIlemberStates
oftheConniunity,forallcategoriesoftextilesexportstotheCornnur.ity
towhichthisAgreementapplies.
CheCc:;jr,unitywillforwardtotheauthoritiesofBrazil,onaruartcrly
basis,precisestatisticalinformationofimportsofsuchproductsinto
theCorjninity.
Γ
1