Proposal for a Council Decision on the provisional application of certain Additional Protocols to the Free Trade and Europe Agreements with the Republic of Latvia and the Republic of Lithuania
Date: 1997-12-02
Institutions: European Commission
Subjects: Latvia, Lithuania, liberalisation of trade, textile product, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  02.12.1997 
COM(97) 649 final 

97/0347  (ACQ 

Proposal for a 

POT TNCTI, DECISION 

on the  provisional  application  of  certain 

Additional  Protocols  to the  Free Trade and Europe Agreements  with  the 
Republic  of Latvia  and  the Republic of Lithuania 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

By decision of  10 November  1997 the Council authorised  the Commission to 

1. 
negotiate with the Republic of Latvia and the Republic of Lithuania,  respectively, 
changes to the provisions concerning trade in textiles products contained  in the Free 
Trade Agreements and in the Europe Agreements with the two countries, in 
particular with a view to extending  Protocols  1  on trade in textile products, which 
would lapse on 31 December  1997, and to eliminating customs duties on textiles 
products on both sides. 

As a result of these negotiations,  Additional Protocols to the Free Trade 
Agreements and the Europe Agreements were initialled with  Latvia and  Lithuania 
on  13 November and on  19 November  1997, respectively. 

Pending formal  conclusion of the Additional Protocols in the form  of an Exchange 
of Letters, the Additional  Protocols should be applied provisionally  from  1  January 
1998. 

Therefore,  the Commission  proposes that the Council adopt the attached 

2. 
draft  Decision  on provisional  application  from  1  January  1998 of the Additional 
Protocols to the Free Trade Agreements and the Europe Agreements with the 
Republic of Latvia and the Republif  of Lithuania. 

Proposai  for  a Council  Decision  on the  provisional  application  of  certain 
Additional  Protocols to the Free Trade and Europe Agreements  with  the 
Republic of Latvia and the Republic of Lithuania 

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(2), thereof, 

Having regard  to the proposal of the Commission, 

Whereas the Commission  has negotiated  on behalf of the Community  Additional 
Protocols  in the form  of an exchange of letters to amend the Free Trade  Agreements 
and the Europe Agreements with the Republic of Latvia and the Republic of Lithuania, 
with a view to extending and amending certain provisions on trade in textile  products 
contained  in these agreements; 

Whereas these Additional  Protocols should be applied on a provisional  basis from 1 
January  1998, pending the completion  of procedures required  for their  conclusion, 
subject  to reciprocal  provisional  application by the Republic of Latvia and by the 
Republic of Lithuania; 

HAS DECIDED  AS FOLLOWS: 

Article 1 

The Additional Protocols in the form  of an exchange of letters to amend the Free 
Trade Agreements and the Europe Agreements with the Republic of Latvia and the 
Republic of Lithuania with a view to extending and amending certain provisions on 
trade in textile products contained  in these agreements shall be applied  on a provisional 
basis from  1  January  1998, pending their formal  conclusion, subject  to  reciprocal 
provisional  application by the Republic of Latvia and by the Republic of Lithuania. 

Article 2 

The texts of the initialled  Additional Protocols are attached  to this Decision. 

Done at Brussels, 

December  1997. 

For the Council 
The  President 

ADDITIONAL PROTOCOL 

in the form of an Exchange of Letters between the European Community and the 
Republic  of  Lithuania  tQ the  Free  Trade  Agreement  between  the  European 
Communities  and  the  Republic  of  Lithuania  and  the  Europe  Agreement 
between  the  Communities  and  their  Member  States  and  the  Republic  of 
Lithuania 

sC \c"At— 

Letter from  the Council of the European  Union 

Sir, 

1.  I have the honour  to refer  to the consultations  held  on  6 November  1997 between 
our  respective  delegations  with  a view  to amending  the Agreement  on free  trade 
and trade-related  matters between  the European  Community,  the European  Atomic 
Energy Community and the European  Coal and  Steel Community and the Republic 
of Lithuania,  signed  on  18 July  1994 and entered  into force on  1  January  1995, and 
the Europe Agreement between  the European  Communities and their  Member 
States, of the one part, and  the Republic of Lithuania,  of the other  part,  signed  on 
12 June  1995, in order  to, inter alia, extend the duration of Protocols  1  of the 
above-mentioned  Agreements  concerning trade in textile products until  3 1 
December 2000 and  modify  the tariff  regime for textile products contained  in these 
Agreements. 

2.  As a result  of  those consultations  it was agreed  to amend  the Free  Trade 

Agreement  and  the Europe  Agreement  as  follows: 

2.1.1. Article  10 ( 1 ) of the Free Trade Agreement  and  Article  16 ( 1 ) of the 

Europe Agreement  shall be replaced  by the following  text: 

'Customs  duties on imports  applicable in the Community  to textile  products 
originating in Lithuania  listed  in Chapters 50 to 63 of the Combined 
Nomenclature  shall be abolished  on  1  January  1998.' 

2.1.2. Annex VI of the Free Trade Agreement and of the Europe Agreement  shall be 

abolished. 

2.2.  Article  10 (2) of the Free Trade Agreement  and Article  16 (2) of the Europe 

Agreement  shall be replaced  by the following  text: 

'Customs duties on imports applicable in Lithuania to textile  products 
originating in the Community listed  in Chapters  50 to 63 of the Combined 
Nomenclature shall be abolished  on  1  January  1998.' 

2.3.  The following  paragraph  shall be added  to Article  10 of the Free Trade 

Agreement  and  to  Article  16 of the Europe  Agreement: 

"3. 

Protocol  1  lays down  the other arrangements  applicable  to the textiles 
products  referred  to  therein." 

ft, 

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2.4.1. The last sentence of Article  19(1) of Protocol  1  of the Free Trade Agreement 

and of the Europe Agreement is replaced by the following: 

'It shall be applicable until 31 December 2000. ' 

2.4.2. The operation  of  Protocol  1 of the Free Trade Agreement and of the Europe 
Agreement shall  be reviewed  prior to the accession  of  Lithuania to the 
WTO. 

2.4.3. Annex II of Protocol  1  of the Free Trade Agreement and of the Europe 

Agreement is replaced by the following: 

'Products without  quantitative limits subject  to the  double-checking 
system  referred  to in Article 2 (3) of the Agreement. 

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

Category: 

2 
4 
5 
6 
7 
8 
12 
13 
20 
28 
39 
117 
118' 

2.4.4. Article 2,  paragraph 4 of  Protocol  A to Protocol  1 is replaced by the 

following: 

'The certificate  of origin  referred  to in paragraph  1 above is not required 
for the importation of goods covered  by a movement certificate  EUR 1 
issued  in conformity  with  Protocol  No 3 of  the Free Trade Agreement in 
cases  where those documents clearly establish  that the Republic of 
Lithuania  is to be considered  as the.country of origin on the basis.of the 
rules on  non-preferential  origin  in force  in the Community.' 

2.5.  This Protocol  shall form an integral part of the Free Trade Agreement and of 
the Europe Agreement.  It shall be drawn up in two copies in the Danish, 
Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, 
Swedish and Lithuanian languages, each of these texts being equally 
authentic. 

3.  I should be obliged  if you could kindly confirm the acceptance of your Government 
of the foregoing! Should this be the case, this Additional Protocol to the Free Trade 
Agreement and to the Europe 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 to this end have been 
completed.  In the meantime, it shall be applied provisionally from  1  January  1998 
on the conditions to be specified  in an Exchange of Notes (see Appendix  1). 

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

For the Council 
of the European Union 

•S 

* 

SW 

Appendix 1 

Exchange  of Notes 

The  Directorate-General  for  External  Relations  of  the  Commission  of  the  European  Communities 
presents  its compliments  to the Mission  of the Republic of  Lithuania  to the  European  Union  and  has the 
honour  to  refer  to  the  Agreement  on  free  trade  and  trade  related  matters  between  the  European 
Community,  the  European  Atomic  Energy  Community  and  the  European  Coal  and  Steel  Community 
and the Republic of  Lithuania, signed  on  18 July  1994 and entered  into force  on  1  January  1995, to the 
Europe  Agreement  between  the  European  Communities  and  their  Member  States,  of the  one  part,  and 
the  Republic  of  Lithuania,  of the other  part,  signed  on  12 June  1995 and  to  the  Additional  Protocol  to 
these Agreements  in the form of an Exchange of Letters initialled on  19 November  1997. 

The  Directorate-General  wishes  to  inform  the  Mission  that  whilst  awaiting  the  completion  of  the 
necessary  procedures  for  the conclusion  and  coming into force of the Additional  Protocol,  the  European 
Community  is  prepared  to  allow  the  provisions  of  the  Additional  Protocol  to  apply  de  facto  from  1 
January  1998.  This  is  on  the  understanding  that  cither  Party  may  at  any  time  terminate  this  de  facto 
application  of the Additional  Protocol  provided  that one hundred and twenty day's notice is given. 

The  Directorate-General  for  External  Relations  would  be  grateful  if  the  Mission  would  confirm  the 
agreement of the Government of the Republic of Lithuania to the  foregoing. 

The Directorate-General  for  External  Relations  of the Commission  of the European  Communities  avails 
itself of this opportunity  to renew to the Mission  of the Republic of Lithuania to the European  Union  the 
assurance of its highest  consideration. 

The  Mission  of  the  Republic  of  Lithuania  to  the  European  Union  presents  its  compliments  to  the 
Directorate-General  for  External  Relations  of  the  Commission  of  the  European  Communities  and  has 
the  honour  to  refer  to  the  Note  of  the  Directorate-General  of  (date  oî  Note  Verbale)  regarding, the 
Agreement  on  free  trade  and  trade  related  matters  between  the  European  Community,  the  European 
Atomic  Energy  Community  and  the  European  Coal  and  Steel  Community  and  the  Republic  of 
Lithuania,  signed  on  18 July  1994 and  entered  into force  on  1 January  1995, to the  Europe  Agreement 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and  the  Republic  of 
Lithuania, of the other part, signed on  12 June  1995 and to the Additional  Protocol  to these  Agreements 
in the form  of an Exchange of Letters initialled on  19 November  1997. 

The  Mission  of the  Republic of Lithuania  to the  European  Union  wishes  to confirm  to the "Directorate-
General  that  whilst  awaiting  the completion  of the necessary  procedures  for  the conclusion  and  coming 
into  force  of  the  Additional  Protocol  in  the  form  of  an  Exchange  of  Letters,  the  Government  of  the 
Republic  of  Lithuania  is prepared  to  allow  the provisions  of  the  Additional  Protocol  to apply  de  facto 
from  1 January  1998. This  is on  the  understanding  that  either  Party  may  at  any  time terminate  this  de 
facto  application  of the Additional  Protocol  provided  that one hundred and twenty day's  notice is given. 

The  Mission  of  the  Republic  of  Lithuania  to  the  European  Union  avails  itself  of  this  opportunity  to 
renew  to  the  Directorate-General  for  External  Relations  of  the  Commission  of  the  European 
Communities  the assurance of its highest  consideration. 

•fc\ 

« 

• 

'  6tf 

Letter from  the Government of the Republic of  Lithuania 

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 consultations  held  on  6 November  1997 between 
our  respective delegations  with  a view  to amending  the Agreement  on free  trade 
and trade-related  matters between  the European  Community, the European  Atomic 
Energy Community  and the European  Coal and  Steel Community and the Republic 
of Lithuania,  signed  on  18 July  1994 and entered  into force on  1  January  1995, and 
the Europe Agreement  between  the European  Communities and their Member 
States, of the one part, and the Republic of Lithuania, of the other  part,  signed on 
12 June  1995, in order  to, inter alia, extend  the duration  of Protocols  1  of the 
above-mentioned  Agreements  concerning trade in textile products until 3 1 
December  2000 and  modify  the tariff  regime for textile products contained  in these 
Agreements. 

2.  As a result  of  those consultations  it was agreed  to amend  the Free Trade 

Agreement  and  the  Europe  Agreement  as  follows: 

2.1.1. Article  10 ( 1 ) of the Free Trade Agreement  and Article  16 ( 1 ) of the 

Europe  Agreement  shall be replaced  by the following  text: 

'Customs  duties on imports applicable in the Community to textile products 
originating in Lithuania listed  in Chapters 50 to 63 of the Combined 
Nomenclature  shall be abolished  on  1  January  1998.' 

2.1.2. Annex VI of the Free Trade  Agreement  and of the Europe Agreement  shall be 

abolished. 

2.2.  Article  10 (2) of the Free Trade Agreement and Article  16 (2) of the Europe 

Agreement  shall be replaced  by the following  text: 

'Customs  duties on imports applicable in Lithuania to textile  products 
originating in the Community  listed  in Chapters 50 to 63 of the Combined 
Nomenclature  shall be abolished  on  1  January  1998.' 

2.3.  The following  paragraph  shall be added  to Article  10 of the Free Trade 

Agreement  and  to  Article  16 of the Europe  Agreement: 

"3. 

Protocol  1  lays down the other arrangements  applicable to the textiles 
products referred  to therein." 

2.4.1. The last sentence of Article  19(1)  of Protocol  1  of the Free Trade  Agreement 

and of the Europe Agreement  is replaced  by the  following: 

4It shall be applicable until 31 December 2000.' 

2.4.2. The operation  of  Protocol  1 of the Free Trade Agreement  and of the Europe 
Agreement  shall  be reviewed  prior  to the accession  of  Lithuania  to the 
WTO. 

2.4.3. Annex II of Protocol  1  of the Free Trade Agreement  and  of the  Europe 

Agreement  is replaced  by the  following: 

'Products  without  quantitative  limits subject  to  the  double-checking 
system  referred  to  in Article  2 (3) of the  Agreement. 

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

Category: 

2 
4 
5 
6 
7 

12 
13 
20 
28 
39 
.117 
118' 

2.4.4. Article 2,  paragraph  4 of  Protocol  A to Protocol  1 is  replaced  by  the 

following: 

'The certificate  of  origin  referred  to in  paragraph  1  above  is not  required 
for  the importation  of goods covered  by a  movement  certificate  EUR1 
issued  in conformity  with  Protocol  No 3 of  the  Free Trade  Agreement  in 

1<-

«CKJ? 

cases  where  those documents  clearly  establish  that  the Republic of 
Lithuania  is to be considered  as the country  of  origin  on  the basis of  the 
rules on  non-preferential  origin  in  force  in  the Community.' 

2.5.  This Protocol  shall form  an integral part of the Free Trade Agreement and of 
the Europe Agreement.  It shall be drawn up in two copies in the Danish, 
Dutch,  English, Finnish, French, German, Greek,  Italian,  Portuguese,  Spanish, 
Swedish  and  Lithuanian  languages, each of these texts being equally 
authentic. 

I should  be obliged  if you could  kindly confirm  the acceptance of your  Government 
of the foregoing.  Should  this be the case, this Additional  Protocol  to the Free Trade 
Agreement  and  to the Europe 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  to this end  have been 
completed.  In the meantime,  it shall be applied  provisionally  from  1  January  1998 
on the conditions  to be specified  in an Exchange of Notes  (see Appendix  1). 

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 the Republic  of  Lithuania 

V 

êé 

ADDITIONAL PROTOCOL 

in the form  of an Exchange of Letters between the European  Community and  the 
Republic  of  Latvia  to  the  Free  Trade  Agreement  between  the  European 
Communities  and  the  Republic  of  Latvia  and  the  Europe  Agreement  between 
the Communities and their Member States and the Republic of Latvia 

AA-. 

Letter from  the Council of the European Union 

Sir, 

1.  I have the honour to refer to the negotiations held on  12 November  1997 between 
our respective delegations with a view to amending  the Agreement on free trade 
and trade-related matters between the European Community, the European Atomic 
Energy Community and the European Coal and Steel Community and the Republic 
of Latvia, signed on  18 July 1994 and entered into force on  1  January 1995, and the 
Europe Agreement between the European Communities and their Member States, 
of the one part, and the Republic of Latvia, of the other part, signed on  12 June 
1995,  in order to, inter alia, extend the duration of Protocols  1 of the above-
mentioned Agreements concerning trade in textile products and modify the tariff 
regime for textile products contained in these Agreements. 

2.  As a result of  those negotiations it was agreed to amend the Free Trade 

Agreement and the Europe Agreement as follows: 

2.1.1. Article  10 (1) of the Free Trade Agreement and Article  16(1)  of the 

Europe Agreement shall be replaced by the following text: 

'Customs duties on imports applicable in the Community to textile products 
originating  in Latvia listed in Chapters 50 to 63 of the Combined 
Nomenclature shall be abolished on  1  January 1998.' 

2.1.2. Annex V of the Free Trade Agreement and of the Europe Agreement 

shall be abolished. 

2.2.  Article  10 (2) of the Free Trade Agreement and Article  16 (2) of the Europe 

Agreement shall be replaced by the following text: 

'Customs duties on imports applicable in Latvia to textile products originating 
in the Community listed in Chapters 50 to 63 of the Combined 
Nomenclature shall be abolished on  1  January  1998.' 

2.3.  The following paragraph shall be added to Article  10 of the Free Trade 

Agreement and to Article  16 of the Europe Agreement: 

'3. 

Protocol  1 lays down the other arrangements applicable to the textiles 
products referred to therein.' 

2.4.1. The last sentence of Article  19 (1) of Protocol  1  of the Free Trade Agreement 

and of the Europe Agreement is replaced by the following: 

// 

A*U 

'It shall be applicable until 31 December 2000, or until Latvia's accession to 
the WTO, whichever date is earlier. Should Latvia accede to the WTO 
before 31 December 2000, consultations will take place prior to Latvia's 
WTO-accession with a view to agreeing on the maintenance of the double-
checking system as specified in Article 2 (3) of Protocol  1.' 

2.4.2. Annex II of Protocol  1  of the Free Trade Agreement and of the Europe 

Agreement is replaced by the following: 

'Products subject to the double-checking system  referred  to in 
Article 2 (3) of the Agreement. 

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

Category: 

1 
2 
4 
5 
6 
7 
9 
12 
15 
26 
27 
31' 

• 

<• 

2.4.3. Article 2,  paragraph 4 of Protocol  A to Protocol  1 is replaced by the 

following: 

The certificate  of origin  referred  to in paragraph  1 above is not required 
for the importation of goods covered by a movement certificate EUR1 
issued in conformity  with Protocol  No 3 of the Free Trade Agreement in 
cases where those documents clearly establish  that the Republic of Latvia is 
to be  considered as the country of origin on the basis of  the rules on non-
preferential  origin in force in the Community.' 

2.5.  This Protocol  shall form an integral part of the Free Trade Agreement and of 
the Europe Agreement.  It shall be drawn up in two copies in the Danish, 
Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, 
Swedish and Latvian languages, each of these texts being equally authentic. 

AM. 

gy> 

3.  I should be obliged if you could kindly confirm the acceptance of your Government 
of the foregoing.  Should this be the case, this Additional Protocol to the Free Trade 
Agreement and to the Europe 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 to this end have been 
completed. In the meantime, it shall be applied provisionally from  1  January 1998 
on the conditions to be specified in an Exchange of Notes (see Appendix 1). 

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

For the Council 
of the European Union 

A< 

&*P 

Appendix 1 

Exchange of Notes 

The  Directorate-General  for  External  Relations  of  the  Commission  of  the  European  Communities 
presents  its  compliments  to  the  Mission  of  the  Republic  of  Latvia  to  the  European  Union  and  has  the 
honour  to  refer  to  the  Agreement  on  free  trade  and  trade  related  matters  between  the  European 
Community,  the  European  Atomic  Energy  Community  and  the  European  Coal  and  Steel  Community 
and  the  Republic  of  Latvia,  signed  on  18 July  1994  and  entered  into  force  on  1 January  1995,  to  the 
Europe  Agreement  between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and 
the Republic of Latvia, of the other part, signed on  12 June  1995 and  to the Additional  Protocol  to these 
Agreements  in the form  of an  Exchange of Letters, initialled on  13 November  1997. 

The  Directorate-General  wishes  to  inform  the  Mission  that  whilst  awaiting  the  completion  of  the 
necessary  procedures  for  the conclusion  and coming into force  of the Additional  Protocol,  the  European 
Community  is  prepared  to  allow  the  provisions  of  the  Additional  Protocol  to  apply  de facto  from  1 
January  1998. This  is  on  the  understanding  that  cither  Party  may  at  any  time  terminate  this  de  facto 
application  of the Additional  Protocol  provided  that one hundred  and twenty day's  notice is given. 

The  Directorate-General  for  External  Relations  would  be  grateful  if  the  Mission  would  confirm  the 
agreement  of the Government  of the Republic of Latvia to the  foregoing. 

The Directorate-General  for  External  Relations of the Commission  of the European  Communities  avails 
itself  of  this  opportunity  to  renew  to  the  Mission  of the  Republic  of  Latvia  to  the  European  Union  the 
assurance of its highest  consideration. 

The  Mission  of  the  Republic  of  Latvia  to  the  European  Union  presents  its  compliments  to  the 
Directorate-General  for  External  Relations  of  the  Commission  of  the  European  Communities  and  has 
the  honour  to  refer  to  the  Note  of  the  Directorate-General  of  (date  of  Note  Verbale)  regarding  the 
Agreement  on  free  trade  and  trade  related  matters  between  the  European  Community,  the  European 
Atomic  Energy  Community  and  the  European  Coal  and  Steel  Community  and  the  Republic  of  Latvia, 
signed on  18 July  1994 and entered  into force on  1  January  1995, to the  Europe Agreement  between the 
European  Communities  and  their  Member  States,  of  the  one  part,  and  the  Republic  of  Latvia,  of  the 
other part, signed on  12 June  1995 and  to the Additional  Protocol  to these Agreements  in the form  of an 
Exchange of Letters, initialled on  13 November  1997. 

The  Mission  of  the  Republic  of  Latvia  to  the  European  Union  wishes  to  confirm  to  the  Directorate-
General  that  whilst  awaiting  the completion  of the necessary  procedures  for  the conclusion  and  coming 
into  force  of  the  Additional  Protocol  in  the  form  of  an  Exchange  of  Letters,  the  Government  of  the 
Republic of Latvia  is prepared  to allow the provisions of the Additional  Protocol  to apply de facto  from 
1 January  1998. This  is on  the understanding  that  either  Party  may  at  any  time  terminate  this de  facto 
application  of the Additional  Protocol  provided that one hundred  and twenty day's  notice is given. 

The  Mission  of the  Republic of  Latvia  to the  European  Union  avails  itself  of  this  opportunity  to  renew 
to the  Directorate-General  for  External  Relations  of the Commission  of  the  European  Communities  the 
assurance of its highest  consideration. 

it. 

X6 

£kJp 

Letter from  the Government of the Republic of Latvia 

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  12 November  1997 between 
our respective delegations with a view  to amending the Agreement on free trade 
and trade-related matters between the European Community, the European Atomic 
Energy Community and the European Coal and Steel Community and the Republic 
of Latvia, signed on  18 July  1994 and entered into force on  1  January  1995, and the 
Europe Agreement between the European Communities and their Member States, 
of the one part, and the Republic of Latvia, of the other part, signed on  12 June 
1995,  in order to, inter alia, extend the duration of Protocols  1  of the above-
mentioned Agreements concerning trade in textile products and modify the tariff 
regime for textile products contained in these Agreements. 

2.  As a result of  those negotiations it was agreed to amend the Free Trade 

Agreement and the Europe Agreement as follows: 

2.1.1. Article  10 ( 1 ) of the Free Trade Agreement and Article  16 ( 1 ) of the 

Europe Agreement shall be replaced by the following text: 

'Customs duties on imports applicable in the Community to textile products 
originating in Latvia listed in Chapters 50 to 63 of the Combined 
Nomenclature shall be abolished on  1  January 1998.' 

2.1.2. Annex V of the Free Trade Agreement and of the Europe Agreement 

shall be abolished. 

2.2.  Article  10 (2) of the Free Trade Agreement and Article  16 (2) of the Europe 

Agreement shall be replaced by the following text: 

'Customs duties on imports applicable in Latvia to textile products  originating 
in the Community listed in Chapters 50 to 63 of the Combined Nomenclature 
shall be abolished on  1  January  1998.' 

2.3.  The following  paragraph shall be added to Article  10 of the Free Trade 

Agreement and to Article  16 of the Europe Agreement: 

'3. 

Protocol  1 lays down the other arrangements applicable to the textiles 
products referred to therein.' 

Àf-

&£ 

2.4.1. The last sentence of Article  19(1) of Protocol  1  of the Free Trade Agreement 

and of the Europe Agreement is replaced by the following: 

'It shall be applicable until 31 December 2000, or until Latvia's accession to 
the WTO, whichever date is earlier. Should Latvia accede to the WTO 
before 31 December 2000, consultations will take place prior to Latvia's 
WTO-accession with a view to agreeing on the maintenance of the double-
checking system as specified  in Article 2 (3) of Protocol  1.' 

2.4.2. Annex II of Protocol  1  of the Free Trade Agreement and of the Europe 

Agreement is replaced by the following: 

'Products subject  to the double-checking  system  referred  to in 
Article 2 (3) of the Agreement. 

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

Category: 

1 
2 
4 
5 
6 
7 
9 
12 
15 
26 
27 
31' 

2.4.3. Article 2,  paragraph 4 of  Protocol  A to Protocol  1 is replaced  by the 

following: 

The  certificate of origin  referred  to in paragraph  1 above is not required 
for the importation  of goods covered  by a movement certificate  EUR1 
issued  in conformity  with  Protocol  No 3 of  the Free Trade Agreement in 
cases where those documents clearly  establish  that the Republic of  Latvia is 
to be  considered  as the country of origin on the basis of  the rules on non-
preferential  origin  in force in the Community.' 

AS 

®d 

2.5.  This Protocol  shall form an integral part of the Free Trade Agreement and of 
the Europe Agreement.  It shall be drawn up in two copies in the Danish, 
Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, 
Swedish and Latvian languages, each of these texts being equally authentic. 

I should be obliged if you could kindly confirm the acceptance of your Government 
of the foregoing.  Should this be the case, this Additional Protocol to the Free Trade 
Agreement and to the Europe 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 to this end have been 
completed. In the meantime, it shall be applied provisionally from  1  January 1998 
on the conditions to be specified  in an Exchange of Notes (see Appendix  1). 

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 the Republic  of Latvia 

At- 

A, 

& 

ISSN 0254-1475 

COM(97) 649 final 

DOCUMENTS 

EN 

11 

Catalogue number  :  CB-CO-97-664-EN-C 

ISBN  92-78-28401-7 

Office  for Official  Publications of the European  Communities 

L-2985  Luxembourg 

£6