Proposal for a COUNCIL DECISION on the conclusion of the agreement in the form of an exchange of letters amending the Agreement between the European Economic Community and the People's Republic of Bangladesh on trade in textile products
Date: 1992-12-10
Institutions: European Commission
Subjects: agreement (EU), distributive trades, textile product

COMMISSION  OF  THE  EUROPEAN  COMVTUNITIES 

C0M(92)549  final 

Brussels, 10 December  1992 

Proposal  for a 

cmmcAL  DECISION 

ON THE CONCLUSION OF THE AGREEMENT 

IN THE FORM OF AN EXCHANGE OF LETTERS AMENDING THE AGREEMENT  BETWEEN 

THE EUROPEAN  ECONOMIC COMMUNITY  AND THE PEOPLE'S REPUBLIC 

OF BANGLADESH ON TRADE  IN TEXTILE  PRODUCTS 

(presented  by  the Commission) 

I 

Proposal  for  a Council  Decision on  the conclusion 
of  the Agreement  in the  form of an Exchange of Letters amending 
the Agreement  between  the European Economic Community  and 
the People's Republic of Bangladesh on Trade  in Textile products 

Explanatory  Memorandum 

By decision dated  19 December  1991  the Council  approved  the renewal  for 
1992 of  the  MFA-type  Agreement  in  the  form  of  an  Exchange  of  Letters 
between  the  EEC  and  the  People's  Republic  of  Bangladesh,  amending  the 
Agreement  applied since  1. January 1987. 

On  20  May  1992  the  Council  authorised  the  Commission  to  start 
consultations with  the authorities of  Bangladesh  in order  to establish 
a double checking  system of monitoring of  imports of  textile  categories 
4, 6 and 8 from Bangladesh,  in view of  the widespread  evidence of  fraud 
in shipments of  the above categories of  textile products. 

On  21  and  22  May  1992  consultations  between  the  Commission  and 
Bangladesh  authorities were  held  in Brussels. On  9 of  October  1992 an 
Agreement  on  the  introduction  of  a double  checking  system  for  goods of 
MFA categories 4, 6 and 8 shipped  from Bangladesh was  initialled  in the 
form of an Exchange of Letters amending  the Agreement  in force. 

The  proposed  Council  decision  is  both  appropriate  and  necessary  in 
order  to safeguard  the proper  application of  the Agreement  by  avoiding 
problems  of  circumvention  that  could  Jeopardize  the  whole  textiles 
policy of  the  Community. 

Consequently,  it  is proposed  that  the Council  approve on  behalf  of  the 
Community  the  attached  Decision  concerning  the  conclusion  of  the 
Agreement  in the  form of  an  Exchange  of  Letters  amending  the  agreement 
between  the  European  Economic  Community  and  the  Peoplefs  Republic  of 
Bangladesh. 

COUNCIL DECISION ON THE CONCLUSION 

OF THE AGREEMENT  IN THE FORM OF AN EXCHANGE OF  LETTERS AMENDING 
THE AGREEMENT BETWEEN THE EUROPEAN  ECONOMIC  COMMUNITY 
AND THE PEOPLE'S REPUBLIC OF BANGLADESH ON TRADE  IN TEXTILE  PRODUCTS 

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  the  Commission  with  the  cooperation  of  the  Bangladesh 
authorities  could  recently  collect  evidence  of  widespread  frauds  in 
shipments apparently  from Bangladesh of products of MFA  categories  4, 6 
and 8. 

Whereas  the  Commission  has  negotiated  on  behalf  of  the  Community  an 
Agreement  in the  form of  an Exchange  of  Letters  amending  the  Agreement 
between  the  European  Economic  Community  and  the  People's  Republic  of 
Bangladesh  on  trade  in  textile  products,  in  order  to  bring  under 
control  and  to  eliminate  the  circumvention  of  the  provisions  of  the 
Agreement  ; 

Whereas  this Agreement  should be approved, 

HAS DECIDED AS FOLLOWS : 

Article 1 

1.  The  Agreement  in  the  form  of  an  Exchange  of  Letters  amending  the 
Agreement  between  the  European  Economic  Community  and  the  People's 
RepubIic  of  Bangladesh  on  trade  in  textile  products,  as  extended, 
is approved on behalf of  the European  Economic  Community. 

The  text  of  the Agreement  in the  form of  an  Exchange of  letters  is 
attached  to this Decision. 

2.  The  President  of  the Council  is hereby  authorized  to designate  the 
persons  empowered  to sign  the Agreement  referred  to  in paragraph 1 
in order  to bind  the Community. 

This Decision shall  enter  into force on  the third  day  following  the day 
of  its publication  in the official  journal  of  the European Communities. 

Art icle 2 

Done at Brussels 

For  the Counci 

The President 

A G R E E M E NT 

in the form of Exchange of Letters amending  the 

Agreement  between the European Economic Community  and 

the People's Republic of Bangladesh on  trade  in textile  products 

k v & ; jM 

- 

/W«fe  <-  lh°  ^ s f0^ . ' ^' 

AGREEMENT 

in  the  form  of  Exchange  of  Letters  amending  the 

Agreement  between  the  European  Economic  Community  and 

the People's  Republic  of  Bangladesh  on  trade  in textile  products 

Letter  Number  One 

Sir , 

1.  I have  the  honour  to  refer  to  the  consultations  held  in Brussels  on 

21  and  22  May  1992  between  our  respective  delegations  for  the 

purpose  of  amending  the  Agreement  on  trade  in  textile  products 

between  the  European  Economic  Community  and  the  People's  Republic 

of  Bangladesh,  applied  since  1  January  1987,  as  extended  by 

Exchange  of  Letters  initialled  on  12  December  1991  and  applied 

since  1  January  1992,  in  order  to  deal  effectively  with  the 

problems  of  circumvention  that  have  arisen  in  the  trade  between  the 

par ties. 

2.  As  a  result  of  these  consultations,  both  parties  agree  on  the 

introduction,  initially  for  the  products  of  categories  4,  6  and  8, 

of  a double  checking  system  based  on  export  and  import  licences  as 

described  in  Protocol  A  Titles  111,  IV  and  V  of  the  bilateral 

agreement,  but  without  quantitative  limits.  Both  parties  agree  that 

in  the  light  of  their  "experience  in  operating  the  system  its 

coverage  may  by  mutual  consent  be  altered  either  to  include 

products  of  other  categories  or  to  exclude  products  for  which  the 

system  is no  longer  considered  necessary. 

3.  Both  parties  agree  that  the  amendments  stemming  from  this  Exchange 

of  Letters  shall  enter  into  force  on  the  day  following  the  date  on 

which  the  Patties  have  notified  each  other  that  the  h;gal 

procedures  necessary  to  this  end  have  been  completed.  It  shall 

remain  in  force  until  31  December  1992. 

\  /, 
. 
V 

/ 

i 

/ 

/ 

4.  I should  be obliged  if you would  kindly  confirm  the  acceptance  of 

your Government  to the foregoing. 

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

For  the Council 

of  the European Communities 

AGREEMENT 

in the  form of. Exchange, of Letters amending  the 

Agreement  between  the European Economic Community  and 

the People's Republic of Bangladesh  on  trade  in textile products 

Letter  Number  Two 

Sir, 

I have the honour  to acknowledge  receipt  of  your  letter of 

which  reads as  follows: 

"1.  I have  the honour  to refer  to the consuI tat ions held  in Brussels on 

21  and  22  May  1992  between  our  respective  delegations  for  the 

purpose  of  amending  the  Agreement  on  trade  in  textile  products 

between  the  European  Economic  Community  and  the  People's  Republic 

of  Bangladesh,  applied  since  1  January  1987,  as  extended  by 

Exchange  of  Letters  initialled  on  12  December  1991  and  applied 

since  1  January  1992,  in  order  to  deal  effectively  with  the 

problems of  circumvention  that  have arisen  in the trade between  the 

part ies. 

2.  As  a  result  of  these  consultations,  both  parties  agree  on  the 

introduction,  initially  for  the products of categories  4, 6 and 8, 

of a double checking  system  based on export and  import  licences as 

described  in  Protocol  A  Titles  III,  IV  and  V  of  the  bilateral 

agreement, but without  quantitative  limits. Both parties agree  that 

in  the  light  of  their  experience  in  operating  the  system  its 

coverage  may  by  mutual  consent  be  altered  either  to  include 

products  of  other  categories  or  to  exclude  products  for  which  the 

system  is no  longer  considered  necessary. 

3.  Both  patties  agree  that  the  amendments  stemming  from  this  Exchange 

of  Letters  shall  enter  into  force on  the day  following  the date  on 

which  the  Patties  have  notified  each  other  that  the  legal 

proceduies  necessary  to  this  end  have  been  completed.  It  shall 

remain  in force until  31 December  1992. 

x-

(  ) 

-t-

4.  I should  be obliged  if  you would  kindly  confirm  the  acceptance of 

your Government  to the foregoing. 

5.  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 People's Republic of 

Bangladesh 

W3. 

ISSN 0254-1475 

COM(92) 549 final 

DOCUMENTS 

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Catalogue number : CB-CO-92-571-EN-C 

ISBN 92-77-50672-5 

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