Proposal for a COUNCIL DECISION ON THE CONCLUSION OF THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA ON THE MODIFICATION OF CERTAIN PROVISIONS OF THE MFA BILATERAL AGREEMENT ON TRADE IN TEXTILE PRODUCTS BETWEEN THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA
Date: 1995-03-29
Institutions: European Commission
Subjects: China, GATT, World Trade Organisation, bilateral agreement, textile product, trade agreement (EU)

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  29.03.1995 
COM(95)  109 final 

95/0077  (ACC) 

Proposal for a 

COUNCIL DECISION 

ON THE CONCLUSION OF THE AGREEMENT BETWEEN 
THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA 
ON THE MODIFICATION OF CERTAIN PROVISIONS OF THE MFA BILATERAL 
AGREEMENT ON TRADE IN TEXTILE PRODUCTS BETWEEN 
THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

1.  The  Commission  has  negotiated  a  bilateral  Agreement  on  the  modification  of  certain 
provisions  of  the  MFA  bilateral  Agreement  on  trade  in  textile  products  between  the 
People's  Republic  of  China  and  the  European  Community  with  the  People's  Republic  of 
China. 

^ 

» 

•• 

. 

. 

2.  The Commission has initialled this Agreement on  14 December  1994. 

3.  The  Council  is  therefore  asked  to  approve  on  behalf  of  the  Community  the  attached 
Decision on the conclusion  of the Agreement  between the European Community  and the 
People's Republic of China on the modification  of certain provisions of the MFA bilateral 
Agreement  on trade  in textile  products  between  the People's  Republic  of  China and  the 
European Community. 

CD 

PROPOSAL FOR A COUNCIL DECISION 
ON THE CONCLUSION OF THE AGREEMENT BETWEEN 
THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA 
ON THE MODIFICATION OF CERTAIN PROVISIONS OF THE MFA BILATERAL 
AGREEMENT ON TRADE IN TEXTILE PRODUCTS BETWEEN 
THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community  and in particular Article 
113 in conjunction with Article 228, paragraph 2, first sentence, thereof, 

Having regard to the proposal from the Commission, 

Whereas the Commission has negotiated on behalf of the Community an Agreement with the 
People's  Republic  of  China  on  the  modification  of  certain  provisions  of  the  MFA bilateral 
Agreement  on  trade  in  textile  products  between  the  People's  Republic  of  China  and  the 
European Community. 

Wteeas this bilateral Agreement should be approved, 

i 

HAS DECIDED AS FOLLOWS: 

ARTICLE 1 

The  bilateral  Agreement  between  the  European  Community  and  the  People's  Republic  of 
China on the modification  of certain provisions of the MFA bilateral Agreement  on trade in 
textile products between the People's Republic of China and the European Community shall be 
approved on behalf of the European Community. 

The text of this Agreement is attached to this Decision. 

The President of the Council is hereby authorized to designate the person empowered to sign 
the Agreement referred to in Article 1 in order to bind the European Community. 

ARTICLE 2 

Done at Brussels, 

For the Council 

The President 

Agreement 

on the modification  of certain provisions of the 

MFA bilateral agreement on trade in textile products 

between the People's Republic of China and the European Community 

Following discussions in December  1992 on the adaptation of growth and flexibility rates laid down 
in  the  1988  MFA  bilateral  agreement  between  China  and  the  European  Community,  and  the 
discussions  in  1994  concerning  the  modifications  of  economic  provisions  of  the  agreement,  as 
envisaged  in  the  Exchange  of  Letters  between  Sir  Leon  Brittan  and  Minister  Wu  Yi  in  view  of 
China's accession to GATT/WTO, the two Parties have agreed that: 

a) 

the  growth  and  flexibility  rates  set  out  in  the  bilateral  agreement  between  China  and  the 
European  Community  are  modified,  as  of  1 January  1993,  as  indicated  in  the  annex  to  this 
Agreement.  This  commitment  reflects  a  compromise  that  takes  into  account  the  following 
elements: 

1) the fact that China has become the largest supplier of the EC in textiles and clothing; 

2)  the perspective of China's accession to GATT/WTO; 

b) 

these modified  rates will be the basis of all notifications  to GATT/WTO, as being those in force 
during  the  12  month  period  prior  to  the  entry  into  force  of  the  ATC  (Uruguay  Round 
Agreement on Textiles and Clothing); 

c) 

the  actual  application  of  the  modified  rates  shall  remain  suspended  until  the  date  of  China's 
accession to GATT/WTO; 

d)  should  China's accession to  GATT/WTO not  be  completed  during the first 9 months  of  1995, 
consultations will be held between the two Parties to discuss the terms of a bilateral  Agreement 
governing the trade in textile products for  1996 and subsequent years, to be based on the growth 
and flexibility rates not lower than those listed in the annex attached to this agreement; 

e) 

this Agreement shall enter into force on the first day of the month following its signature. It shall 
apply provisionally as of the date of its initialling. 

For the Government of the 
People's Republic of China 

For the Council of the 
European Union 

CD 

ANNEX TO THE AGREEMENT ON THE MODIFICATION 
OF THE MFA BILATERAL AGREEMENT ON TRADE IN TEXTILE PRODUCTS 
BETWEEN THE PEOPLE'S REPUBLIC OF CHINA 
AND THE EUROPEAN COMMUNITY 

Growth rates for quantitative limits (%) 

Categories 

2 
3 
4 
5 
6 
7 
8 
9 
12 
15 
16 
18 
19 
20/39 
21 
22 
23 
26 
32 
37. 
73 

0.2 
2 0 
13 
1.5 
175 
1.5 
1.5 
2.5 
3.0 
3.0 
2.0 
3.0 
3.0 
2.75 
2.5 
3.5 
3.0 
15 
3.0 
5.0 
2.0 

II. 

Flexibility rates (%) 

b) 

c) 

advance use 

carry over 

transfers 
- between categories 

2 and 3 

- from 1  to 2 and 3 
- between 4 to 8 
- from groups I, II and 
III to groups II and III 

1 to 5 

3 to 7 

C 

ISSN 0254-1475 

COM(95) 109  final 

DOCUMENTS 

EN 

11  02 

Catalogue number : CB-CO-95-122-EN-C 

ISBN 92-77-87073-7 

Offîce for Official Publications of the European Communities 

L-2985 Luxembourg