AGREEMENT in the form of an Exchange of Letters between the European Community and Ukraine concerning the renewal of the Agreement between the European Economic Community and Ukraine on Trade in Textile Products initialled on 5 May 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 22 December 1994

Letter from the Council of the European Union

Sir,

1. I have the honour to refer to the negotiations held on 8 and 9 November 1995 between our respective delegations with a view to renew the Agreement between the European Economic Community and Ukraine on trade in textile products initialled on 5 May 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 22 December 1994.

2. As a result of these negotiations, both Parties agreed to amend the following provisions of the Agreement:

2.1. In Article 2, paragraph 1, the following subparagraph is added:

'Exports of products listed in Annex III not subject to quantitative limits shall be subject to a double-checking system as specified in Protocol A.`

2.2. The second and third sentence of Article 20, paragraph 1, are replaced by the following text:

'It shall be applicable until 31 December 1998. 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 1999, unless either Party notifies the other at least six months before 31 December 1998, that it does not agree with this extension.`

2.3. Annex II which sets out the quantitative restrictions for exports from Ukraine to the European Community is replaced for the period 1 January 1996 to 31 December 1999 by Appendix 1 to this letter.

2.4. The Annex to Protocol C which sets out the quantitative restrictions for exports from Ukraine to the European Community after OPT operations in Ukraine is replaced for the period 1 January 1996 to 31 December 1999 by Appendix 2 to this letter.

2.5. The title of Title III of Protocol A is replaced by 'Double-checking system`.

2.6. In Article 6, paragraph 1, of Protocol A, the following subparagraph is added:

'The competent authorities of Ukraine shall issue an export licence in respect of all consignments of textile products listed in Annex III subject to a double-checking system without quantitative limits as provided for in Article 2, paragraph 1, second subparagraph of the Agreement.`

2.7. After Article 7, paragraph 2, of Protocol A, the following paragraph is added:

'3. For products subject to a double checking system without quantitative limits the export licence shall conform to the model annexed to this Protocol. It shall only cover one category of products and may be used for one or more consignment of the products in question. It shall be valid for exports throughout the customs territory to which the Treaty establishing the European Community applies.`

2.8. The text of Article 11 of Protocol A is replaced by the following text:

'Importation into the Community of textile products subject to quantitative limits or to a double-checking system without quantitative limits shall be subject to the presentation of an import authorization.`

3. Annex III referred to under 2.6 is reproduced in Appendix 3 to this letter.

4. The model of the export licence referred to under 2.7 is reproduced in Appendix 4 to this letter.

5. Should Ukraine become a Member to the World Trade Organisation before the date of expiry of the Agreement, the provisions of Article 2, paragraphs 2 and 3, 3, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, Protocol A, Protocol B, Protocol C, Agreed Minute No 1, Agreed Minute No 2, Agreed Minute No 3, Agreed Minute No 4 and Agreed Minute No 6 shall continue to be applicable as administrative arrangements within the meaning of Article 2, paragraph 17 of the WTO Agreement on Textiles and Clothing.

6. The Agreed Minute set out in Appendix 5 to this letter shall form an integral part of the Agreement.

7. 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 that the legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from 1 January 1996 on conditions of reciprocity.

Please accept, Sir, the assurance of my highest consideration.

For the Council of the European Union

Appendix 1

ANNEX II (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 2

ANNEX TO PROTOCOL C (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 3

ANNEX III

Products without quantitative limits subject to the double-checking system referred to in Article 2, paragraph 1, second subparagraph (the full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement).

Categories

22

33

73

74

83

Appendix IV

ANNEX TO PROTOCOL A, ARTICLE 7 (3)

>PICTURE>

Appendix 5

AGREED MINUTE

In the context of the Agreement between the European Community and Ukraine on trade in textile and clothing products, initialled in Brussels on 9 November 1995, Ukraine declared that at present there are neither quantitative limits, licensing systems or other non-tariff barriers applicable to imports of textile and clothing products originating in the European Community into Ukraine, nor double-pricing practices for raw materials and other textile products.

As regards customs duties presently applicable to the abovementioned imports into Ukraine, both Parties agreed that these duties will be bound at the present level for the duration of the Agreement. Ukraine also agreed not to introduce any non-tariff barriers to imports of textile and clothing products originating in the European Community.

As far as customs duties applicable to specific categories of textile products are concerned, the Community's proposals for their alignment to customs duties applicable to imports of the same products into the Community, will be submitted to the concerned authorities of Ukraine for their thorough consideration and early decision.

Brussels, 9 November 1995

For the Government of Ukraine

For the Council of the European Union

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 negotiations held on 8 and 9 November 1995 between our respective delegations with a view to renew the Agreement between the European Economic Community and Ukraine on trade in textile products initialled on 5 May 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 22 December 1994.

2. As a result of these negotiations, both Parties agreed to amend the following provisions of the Agreement:

2.1. In Article 2, paragraph 1, the following subparagraph is added:

"Exports of products listed in Annex III not subject to quantitative limits shall be subject to a double-checking system as specified in Protocol A."

2.2. The second and third sentence of Article 20, paragraph 1, are replaced by the following text:

"It shall be applicable until 31 December 1998. 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 1999, unless either Party notifies the other at least six months before 31 December 1998, that it does not agree with this extension."

2.3. Annex II which sets out the quantitative restrictions for exports from Ukraine to the European Community is replaced for the period 1 January 1996 to 31 December 1999 by Appendix 1 to this letter.

2.4. The Annex to Protocol C which sets out the quantitative restrictions for exports from Ukraine to the European Community after OPT operations in Ukraine is replaced for the period 1 January 1996 to 31 December 1999 by Appendix 2 to this letter.

2.5. The title of Title III of Protocol A is replaced by "Double-checking system".

2.6. In Article 6, paragraph 1, of Protocol A, the following subparagraph is added:

"The competent authorities of Ukraine shall issue an export licence in respect of all consignments of textile products listed in Annex III subject to a double-checking system without quantitative limits as provided for in Article 2, paragraph 1, second subparagraph of the Agreement."

2.7. After Article 7, paragraph 2, of Protocol A, the following paragraph is added:

"3. For products subject to a double checking system without quantitative limits the export licence shall conform to the model annexed to this Protocol. It shall only cover one category of products and may be used for one ore more consignment of the products in question. It shall be valid for exports throughout the customs territory to which the Treaty establishing the European Community applies."

2.8. The text of Article 11 of Protocol A is replaced by the following text:

"Importation into the Community of textile products subject to quantitative limits or to a double-checking system without quantitative limits shall be subject to the presentation of an import authorization."

3. Annex III referred to under 2.6 is reproduced in Appendix 3 to this letter.

4. The model of the export licence referred to under 2.7 is reproduced in Appendix 4 to this letter.

5. Should Ukraine become a Member to the World Trade Organisation before the date of expiry of the Agreement, the provisions of Article 2, paragraphs 2 and 3, 3, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, Protocol A, Protocol B, Protocol C, Agreed Minute No 1, Agreed Minute No 2, Agreed Minute No 3, Agreed Minute No 4 and Agreed Minute No 6 shall continue to be applicable as administrative arrangements within the meaning of Article 2, paragraph 17 of the WTO Agreement on Textiles and Clothing.

6. The Agreed Minute set out in Appendix 5 to this letter shall form an integral part of the Agreement.

7. 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 that the legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from 1 January 1996 on conditions of reciprocity.

Please accept, Sir, the assurance of my highest consideration.`

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of Ukraine

Appendix 1

ANNEX II (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 2

ANNEX TO PROTOCOL C (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 3

ANNEX III

Products without quantitative limits subject to the double-checking system referred to in Article 2, paragraph 1, second subparagraph (the full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement).

Categories

22

33

73

74

83

Appendix IV

ANNEX TO PROTOCOL A, ARTICLE 7 (3)

>PICTURE>

Appendix 5

AGREED MINUTE

In the context of the Agreement between the European Community and Ukraine on trade in textile and clothing products, initialled in Brussels on 9 November 1995, Ukraine declared that at present there are neither quantitative limits, licensing systems or other non-tariff barriers applicable to imports of textile and clothing products originating in the European Community into Ukraine, nor double-pricing practices for raw materials and other textile products.

As regards customs duties presently applicable to the abovementioned imports into Ukraine, both Parties agreed that these duties will be bound at the present level for the duration of the Agreement. Ukraine also agreed not to introduce any non-tariff barriers to imports of textile and clothing products originating in the European Community.

As far as customs duties applicable to specific categories of textile products are concerned, the Community's proposals for their alignment to customs duties applicable to imports of the same products into the Community, will be submitted to the concerned authorities of Ukraine for their thorough consideration and early decision.

Brussels, 9 November 1995

For the Government of Ukraine

For the Council of the European Union