Memorandum of Understanding between the European Community and the Islamic Republic of Pakistan on arrangements in the area of market access for textile products
Date: 1994-10-15
Institutions: European Community, Pakistan
Subjects: Pakistan, clothing, market access, originating product, quantitative restriction, tariff quota, tariff reduction, textile product, trade agreement (EU)








L_1996153EN.01004801.xml










27.6.1996   


EN


Official Journal of the European Communities


L 153/48





MEMORANDUM OF UNDERSTANDING
between the European Community and the Islamic Republic of Pakistan on arrangements in the area of market access for textile products






1.


In accordance with the understanding reached between the Government of Pakistan and the European Commission on the occasion of the Ministerial meeting held in Marrakesh in April 1994 to conclude the Uruguay Round of trade negotiations, representatives of both delegations held consultations in order to find a satisfactory solution to outstanding problems in the area of market access for textiles and clothing products and thus to create an improved, stable framework for future bilateral trade relations.










2.


The Government of Pakistan noted the European tariff offer on textiles and clothing products annexed to the WTO Agreement, which is summarized in Annex I.










3.


The European Commission noted that the Government of Pakistan has reduced its tariffs on all textiles and clothing products to a maximum level of 70 % on 1 July 1994 and will bind this level under the relevant WTO provisions before 31 December 1995. Furthermore, tariffs will be reduced and bound on the items listed in Annex II at the levels and according to the timetable indicated.










4.


The Government of Pakistan will also remove during 1994 all quantitative restrictions on the textile products given in Annex II. However, should a critical situation arise in the textiles industry of Pakistan or in relation to the balance of payments situation of Pakistan, the Government of Pakistan retains the right under GATT 1994 and the WTO to reintroduce, after necessary consultations with the European Commission, quantitative restrictions.










5.


The Government of Pakistan confirmed that the dual pricing policy for the export of raw cotton had been abolished. It hoped that this would meet the concerns expressed by the European textiles industry in this regard. While Pakistan reserved its right under the GATT to take action in order to address a critical situation that might arise in this area, it was its policy to avoid such measures.










6.


In view of the significant contribution to achieving effective access to the market of Pakistan for textiles and clothing products which these additional commitments represent, the European Commission is prepared to give favourable consideration to requests which the Government of Pakistan might introduce in respect of the management of existing quota restrictions for exceptional flexibility (including carry-over, carry-forward and inter-category transfers) not exceeding for each quota year the following amounts:






1994:


3 000 tonnes,




1995:


3 000 tonnes,




1996:


3 000 tonnes,




1997:


3 000 tonnes,




1998:


3 000 tonnes,




1999:


3 000 tonnes,




2000:


4 000 tonnes,




2001:


4 000 tonnes,




2002:


4 000 tonnes,




2003:


4 000 tonnes,




2004:


4 000 tonnes.




In each quota year the total amount of exceptional flexibilities may not exceed 2 000 tonnes for any particular category.










7.


Moreover, the European Commission will initiate immediately the necessary internal procedures in order to ensure that all restrictions currently affecting the importation of products of the handloom and cottage industries of Pakistan are removed before entry into force of the WTO.










8.


The Delegation of Pakistan drew the Commission's attention to the importance which the Government of Pakistan attached to the early integration into GATT of certain categories currently under restraint in the European Union.










9.


The Delegation of Pakistan and the European Commission recalled that in accordance with the notifications which they would make to the WTO Secretariat concerning the provisions of their existing bilateral agreement on textile products to be maintained as administrative arrangements under the WTO Agreement, the basket exit mechanism would be replaced by the safeguard clause of the WTO textiles agreement and that current procedures regarding circumvention would be maintained (i.e. any charges made to quotas after consultations would not exceed the amount of goods in question).










10.


The Government of Pakistan and the European Commission agreed to consult with each other periodically to ensure the proper implementation of the Memorandum of Understanding and to explore further possibilities for mutual expansion of trade in textiles and clothing.






Por la Comunidad Europea
For Det Europæiske Fællesskab
Für die Europäische Gemeinschaft
Για την Ευρωπαϊκή Κοινότητα
For the European Community
Pour la Communauté européenne
Per la Comunità europea
Voor de Europese Gemeenschap
Pela Comunidade Europeia
Euroopan yhteisön puolesta
På Europeiska gemenskapens vägnar







ANNEX I
TARIFF REDUCTIONS MADE BY THE EUROPEAN UNION ON TEXTILES AND CLOTHING PRODUCTS
As part of the World Trade Organization Agreement on Market Access, the European Union has scheduled tariff commitments whereby duties on textiles and clothing products will not exceed the following maximum levels:






Fibres and yarns:


4 %,




Yarns put up for retail sale:


5 %,




Fabrics:


8 %,




Made-ups and clothing:


12%.




Where current duty rates are lower, the lower rates will continue to apply.



ANNEX II
LIST OF PRIORITY EXPORT ITEMS TO PAKISTAN








Product description


CD Code


Tariff rates (%)




After 5 years 1.7.2000


After 10 years 1.7.2005




Synthetic filament yarn


5402


30


25




Artificial filament yarn


5403


25


20




Synthetic staple fibres


5503


 


 










—


acrylic






 


25


20










—


other






 


35


25




Woven fabrics of silk


5007


35


30




Yarn of carded wool


5106, 5107


 


 










—


unbleached, grey






 


35


30










—


dyed






 


15


10




Woven fabrics of carded wool


5111


35


30




Woven fabrics of combed wool


5112


35


30




Woven fabrics of flax


5309


35


30




Cotton yarn


5205, 5206, 5207


15


10




Filament sewing thread


5401


25


20




Woven fabrics of synthetic filament yarns (dyed/printed)


5407 10, 20, 42, 43, 44, 53, 54, 60, 72, 73, 74, 82, 83, 84, 92, 93, 94


35


30




Woven fabrics of artificial filament yarns (dyed/printed)


5408 10, 22, 24, 32, 34


25


20




Yarn of synthetic staple fibres (mixed with wool)


5509 31, 32, 52, 61, 91, 99


20


15




Woven fabrics of synthetic staple fibres (dyed/printed and of yarns of different colours)


5512 19, 29, 99


35


30




5513 21 to 49,


35


30




5514 21 to 49


35


30




Other woven fabrics of synthetic staple fibres (mixed with wool)


5515 13, 22, 92


35


30




Non-wovens


5603


35


30




Synthetic turf for sports


ex 5703 20, 30


15


10




Woven pile fabrics


5801


40


35




Textile fabrics impregnated


5903


40


35




Technical textiles


5911


35


30




Sweaters and pullovers


6110 10


50


35




Men's suits of wool


6203 11


50


35




Women's dresses


 


 


 










—


knitted






6104 41, 42, 43, 44, 49


50


35










—


woven






6104 41, 42, 43, 44, 49


50


35




Men's overcoats of wool


6201 11, 91


50


35




Men's shirts, knitted of wool


6105 90 10


50


35




Women's blouses, knitted of wool


6106 90 10


50


35




Long pile fabrics


6001 10


35


30




Other fabrics, knitted


6002 10, 30


50


35




Knitted men's suits of wool


6103 11


50


35




Knitted men's trousers of wool


610341


50


35




Knitted women's suits of wool


6104 11


50


35




Knitted women's ensembles of wool


6104 21


50


35




Babies' garments of wool


6111 10


50


35




Pantyhose, stockings, tights


6115


50


35




Men's suits of wool


6203 11


50


35




Men's jackets of wool


6203 31


50


35




Shawls and scarves


6214 (except 20)


50


35




Ties


6215


50


35




Blankets


6301 20, 90


50


35