Proposal for a Council Decision on the signing, on behalf of the European Community, of an Agreement in the form of a Memorandum of Understanding between the European Community and the Democratic Socialist Republic of Sri Lanka on arrangements in the area of market access for textile and clothing products, and authorising its provisional application
Date: 2000-12-29
Institutions: European Commission
Subjects: Sri Lanka, clothing, market access, tariff policy, textile product

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 29.12.2000
COM(2000) 887 final

2000/0362 (ACC)

Proposal for a

COUNCIL DECISION

on the signing, on behalf of the European Community, of an Agreement in the form of a
Memorandum of Understanding between the European Community and the Democratic
Socialist Republic of Sri Lanka on arrangements in the area of market access for textile
and clothing products, and authorising its provisional application

(presented by the Commission)

EXPLANATORY MEMORANDUM

In accordance with the Council negotiating directives of 9 November, the Commission has
negotiated a Memorandum of Understanding concerning market access in the textiles and
clothing sector with Sri Lanka.

The agreement provides that Sri Lanka will:

-

-

-

Bind its import tariffs for the textile and clothing sector within the WTO at the
rates the European Union considers appropriate for developing countries save
for some rare exceptions;

Reduce its tariffs to those new bound levels where they currently exceed them;

Undertake not to apply any tariffs in the sector higher than the current applied
rates (‘standstill’) where the current applied rates in the sector are lower than
the bindings;

The agreement provides that the European Community:

-

-

Will suspend the operation of the four categories of quantitative restrictions
currently in force (Categories 6, 7,8 and 21) following Sri Lanka’s notification
to the WTO of the agreed bound rates and its respect of the agreed rates;

Retains the right to re-apply the quota regime at the level applicable for the
year in question in the event that Sri Lanka fails to abide either by the above
commitments or by its non-tariff obligations set forth in the agreement (see
below).

The agreement further provides that certain categories of textile and clothing products from
Sri Lanka to the European Community (being a wider range than the previous quotas) will be
covered by a double checking system.

The agreement also places the Parties under the obligation not to introduce any non-tariff
barriers for trade in the textile and clothing sector.

The agreement provides for periodic consultations and for consultations on request on any of
its provisions and further provides that the Parties will cooperate fully concerning any
necessary notifications to be made to the WTO or any of its bodies.

The Council is invited to approve this proposal for a Council Decision on the signing, on
behalf of the European Community, of a Memorandum of Understanding on Market Access
in textile products between the European Community and the Democratic Socialist Republic
of Sri Lanka and authorising its provisional application pending the formal conclusion of that
Agreement.

2

2000/0362 (ACC)

Proposal for a

COUNCIL DECISION

on the signing, on behalf of the European Community, of an Agreement in the form of a
Memorandum of Understanding between the European Community and the Democratic
Socialist Republic of Sri Lanka on arrangements in the area of market access for textile
and clothing products, and authorising its provisional application

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
133 thereof, in conjunction with the first and second subparagrah of Article 300 (2) thereof,

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

(3)

(4)

The Commission has negotiated on behalf of the Community a bilateral Agreement in
the form of a Memorandum of Understanding on trade in textile products with Sri
Lanka;

The Agreement in the form of a Memorandum of Understanding was initialled on 5
December 2000;

The Agreement in form of a Memorandum of Understanding should be signed on
behalf of the Community;

In order to allow its benefits to accrue to both Parties immediately following the
relevant notifications to the WTO, it is appropriate to applythis Agreement on a
provisional basis as from 1 December 2000 pending completion of the relevant
procedures for its formal conclusion, subject to reciprocity.

HAS DECIDED AS FOLLOWS:

Article 1

Subject to its possible conclusion at a later datethe President of the Council is hereby
authorised to designate the persons empowered to sign, on behalf of
the European
Community, the Agreement in the form of a Memorandum of Understanding on trade in
textile products with Sri Lanka.

The text of the Agreement is annexed to this Decision.

1

OJ C …

3

Article 2

Subject to reciprocity, the Agreement in the form of a Memorandum of Understanding shall
be applied on a provisional basis from 1 December 2000 pending the completion of the
procedures for its formal conclusion

Article 3

1. The Commission, in accordance with the procedure referred to in Art. 17 of Council
Regulation 3030/93 on common rules for imports of certain textile products from third
countries2, may modify the application of the double-checking regime for certain
products, after consultations with Sri Lanka under Point 7 of the Memorandum of
Understanding.

2. The Commission shall re-apply the quota regime in the event of the failure on the part of
Sri Lanka to fulfill the obligations covered by Points 2 and 6 of the Memorandum of
Understanding in accordance with the procedure referred to in Art. 17 of Council
Regulation 3030/93 on common rules for imports of certain textile products from third
countries2.

Done at Brussels,

For the Council
The President

2

OJ No L 275, 8.11.1993, as last amended by Council Regulation (EC) no 824/97 (OJ No L 119,
8.5.97,p.1)

4

ANNEX

MEMORANDUM OF UNDERSTANDING

between the European Community and the Democratic Socialist Republic of
Sri Lanka on arrangements in the area of market access
for textile and clothing products
initialled in Brussels on 5 December 2000

1.

Delegations of the European Community and the Democratic Socialist Republic
of Sri Lanka met on 10 October and 22 November 2000 with a view to discuss
improvements in access to the respective markets of both Parties for textile and
clothing products.

2.

The Democratic Socialist Republic of Sri Lanka agrees:

1. To bind its tariffs on textiles and clothing at the rates shown in Column 1 of
Annex 1 by making an appropriate notification to this effect to the World
Trade Organisation.
Sri Lanka agrees to consult with the European
Community prior to making the notification.

2. Where the applied rates as shown in Column 2 are lower than the rates of
import duty shown in Column 1 of Annex 1 Sri Lanka undertakes not to apply
any rates higher than the rates shown in Column 2 on imports into Sri Lanka
from the European Community.

3. Where the applied rates as shown in Column 2 are higher than the rates of
import duty shown in Column 1 Sri Lanka agrees to reduce those rates to the
bound rates set out in column 1.

The European Community agrees that following confirmation by Sri Lanka to the
Community that the notification foreseen in Point 2.1 has been effected and the
provisions of paragraphs 2.2 and 2.3 have been implemented by Sri Lanka, the
European Community will suspend the application of the quantitative restrictions
currently in force in respect of imports of textile and clothing products from Sri
Lanka (being those in respect of Categories 6, 7, 8 & 21).

The Parties agree that the European Community retains the right to reapply the
quota regime at the level applicable for the year in question in the event that Sri
Lanka fails to fulfil any of the obligations contained in Points 2 and 6 of this
Agreement. The European Community agrees to consult with Sri Lanka pursuant
to Point 7 before exercising this right

Without prejudice to Point 4 the Parties agree that the products set out in Annex 2
will be subject to all the procedures foreseen in the double checking system set
out in Articles 18 – 24 of Annex III to Council Regulation 3030/93. The double
checking system will be introduced following confirmation by Sri Lanka to the
Community that the notification foreseen in Point 2.1 has been effected. The
Parties agree to keep the products subject to the double-checking system under
review and may propose changes to it following consultations pursuant to Point 7.

3.

4.

5.

5

6.

7.

8.

9.

10.

11.

12.

The Parties agree to refrain from adopting any non-tariff measures that could
hinder trade in textile and clothing products. In this context the Parties agree that
quantitative limits will not be introduced on the products referred to in Point 3
except in the event the European Community exercises the right to reapply the
quota regime pursuant to Point 4.

The Parties agree that the balance of the present agreement, forming a package of
mutual concessions freely extended between the Parties, depends on the full and
faithful implementation of all the terms of this Memorandum of Understanding.
As a result the Parties agreed to consult periodically in order to ensure the proper
implementation of this Memorandum of Understanding. In addition, the Parties
agree to consult following the request of either Party concerning any aspect of
this Memorandum of Understanding.

In the event that the European Community seeks to exercise the right contained in
Point 4 the European Community will provide Sri Lanka with details of any
alleged failure in writing. Consultations with a view to remedying the failure in
question will be held within 30 days of such a written request unless the Parties
agree otherwise.
In the event the Parties cannot agree on appropriate remedial
action within 30 days from the start of the consultations the European Community
will have the right to proceed under Point 4.

The Parties agree to cooperate fully in respect of any notifications that may be
necessary to the World Trade Organisation or any of its Bodies. Any such
notifications will be made jointly by the Parties unless they agree otherwise.

The Parties agree that this Memorandum of Understanding is without prejudice to
the possibility of seeking mutual concessions concerning market access from
other trading partners in the sector.

The Parties agree that this Memorandum of Understanding is without prejudice to
their rights to invoke the WTO Dispute Settlement Understanding.

All Agreed Minutes and Declarations annexed to this Memorandum of
Understanding shall form an integral part of it.

this Agreement

The Parties agree that
in the form of a Memorandum of
Understanding shall enter into force on the first day of the month following the
day on which the Parties have notified each other that the internal procedures
necessary to this end have been completed. In the meantime, it shall be applied
provisionally on conditions of reciprocity.

6

Annex 1

HS6 code Rate for
binding

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500500
500600
500710
500720
500790
510400
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7

Applied
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rate
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8

520839
520841
520842
520843
520849
520851
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520853
520859
520911
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9

521139
521141
521142
521143
521149
521151
521152
521159
521211
521212
521213
521214
521215
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25,0% 25%
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5,0%
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10

540232
540233
540239
540241
540242
540243
540249
540251
540252
540259
540261
540262
540269
540310
540320
540331
540332
540333
540339
540341
540342
540349
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540500
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540620
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540730
540741
540742
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540751
540752
540753
540754
540761
540769
540771
540772
540773
540774
540781
540782
540783
540784

0%
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10,0% 25%
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0%
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11

540791
540792
540793
540794
540810
540821
540822
540823
540824
540831
540832
540833
540834
550110
550120
550130
550190
550200
550310
550320
550330
550340
550390
550410
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550690
550700
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550820
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550912
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550922
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550941
550942
550951
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550953
550959
550961
550962

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5,0%
5,0%
5,0%
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12

550969
550991
550992
550999
551011
551012
551020
551030
551090
551110
551120
551130
551211
551219
551221
551229
551291
551299
551311
551312
551313
551319
551321
551322
551323
551329
551331
551332
551333
551339
551341
551342
551343
551349
551411
551412
551413
551419
551421
551422
551423
551429
551431
551432
551433
551439
551441
551442

0%
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0%
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5,0%
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5,0%
5,0%
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5,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
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10,0%
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10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%
10,0%

13

551443
551449
551511
551512
551513
551519
551521
551522
551529
551591
551592
551599
551611
551612
551613
551614
551621
551622
551623
551624
551631
551632
551633
551634
551641
551642
551643
551644
551691
551692
551693
551694
560110
560121
560122
560129
560130
560210
560221
560229
560290
560311
560312
560313
560314
560391
560392
560393

0%
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0%
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0%
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0%
10,0%
0%
10,0%
10,0%
0%
25,0% 25%
0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
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0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%

14

560394
560410
560420
560490
560500
560600
560710
560721
560729
560730
560741
56074901
56074909
56075001
56075009
56079001
56079002
56079003
56079009
560811
560819
560890
560900
570110
570190
570210
570220
570231
570232
570239
570241
570242
570249
570251
570252
570259
570291
570292
570299
570310
570320
570330
570390
570410
570490
570500
580110
580121

5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
5,0%
0%
0%
5,0%
25,0% 25%
25,0% 25%
10,0% 10%
25,0% 25%
25,0% 25%
10,0% 10%
25%
25%
10%
10%
25%
25%
10%
10%
25%
25%
25%
25%
25%
25%
10,0% 10%
25,0% 25%
25,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
10,0% 25%
0%
10,0%
0%
10,0%

15

580122
580123
580124
580125
580126
580131
580132
580133
580134
580135
580136
580190
580211
580219
580220
580230
580310
580390
580410
580421
580429
580430
580500
580610
580620
580631
580632
580639
580640
580710
580790
580810
580890
580900
581010
581091
581092
581099
581100
590110
590190
590210
590220
590290
590310
590320
590390
590410

0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
10,0% 10%
10,0% 10%
10,0% 10%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
10,0%
0%
10,0% 10%
10,0% 10%
10,0% 10%
10,0% 10%
10,0% 10%
10,0% 25%
10,0% 10%
10,0% 10%
10,0% 10%

16

590491
590492
590500
590610
590691
590699
590700
590800
590900
591000
591110
591120
591131
591132
591140
591190
600110
600121
600122
600129
600191
600192
600199
600210
600220
600230
600241
600242
600243
600249
600291
600292
600293
600299
610110
610120
610130
610190
610210
610220
610230
610290
610311
610312
610319
610321
610322
610323

10,0% 10%
10,0% 10%
10,0% 10%
10,0% 10%
10,0%
0%
0%
10,0%
10,0% 10%
10,0% 10%
10,0% 10%
10,0% 10%
10,0% 10%
10,0% 10%
0%
10,0%
10,0% 10%
10,0% 10%
10,0% 10%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
0%
10,0%
10,0%
0%
0%
10,0%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%

17

610329
610331
610332
610333
610339
610341
610342
610343
610349
610411
610412
610413
610419
610421
610422
610423
610429
610431
610432
610433
610439
610441
610442
610443
610444
610449
610451
610452
610453
610459
610461
610462
610463
610469
610510
610520
610590
610610
610620
610690
610711
610712
610719
610721
610722
610729
610791
610792

17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%

18

610799
610811
610819
610821
610822
610829
610831
610832
610839
610891
610892
610899
610910
610990
611010
611020
611030
611090
611110
611120
611130
611190
611211
611212
611219
611220
611231
611239
611241
611249
611300
611410
611420
611430
611490
611511
611512
611519
611520
611591
611592
611593
611599
611610
611691
611692
611693
611699

17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%

19

611710
611720
61178001
61178009
611790
620111
620112
620113
620119
620191
620192
620193
620199
620211
620212
620213
620219
620291
620292
620293
620299
620311
620312
620319
620321
620322
620323
620329
620331
620332
620333
620339
620341
620342
620343
620349
620411
620412
620413
620419
620421
620422
620423
620429
620431
620432
620433
620439

17,5% 10%
17,5% 10%
17,5% 10%
0%
17,5%
17,5%
0%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%

20

620441
620442
620443
620444
620449
620451
620452
620453
620459
620461
620462
620463
620469
620510
620520
620530
620590
620610
620620
620630
620640
620690
620711
620719
620721
620722
620729
620791
620792
620799
620811
620819
620821
620822
620829
620891
620892
620899
620910
620920
620930
620990
621010
621020
621030
621040
621050
621111

17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%

21

621112
621120
621131
621132
621133
621139
621141
62114201
62114209
62114301
62114309
62114901
62114909
621210
621220
621230
621290
621310
621320
621390
621410
621420
621430
621440
621490
621510
621520
621590
621600
621710
621790
630110
630120
630130
630140
630190
630210
630221
630222
630229
630231
630232
630239
630240
630251
630252
630253
630259

17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5%
0%
17,5% 10%
17,5%
0%
17,5% 10%
17,5%
0%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
0%
17,5%
17,5%
0%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%

22

630260
630291
630292
630293
630299
630311
630312
630319
630391
630392
630399
630411
630419
630491
630492
630493
630499
630510
630520
630532
630533
630539
630590
630611
630612
630619
630621
630622
630629
630631
630639
630641
630649
630691
630699
630710
630720
630790
630800
63090001
63090009
631010
631090

17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 10%
17,5% 25%
17,5% 25%
17,5% 25%

23

Annex 2

Products subject to the double-checking system:

Categories 4, 5, 6, 7 and 26

24

Agreed Minute

In the context of the Agreement in the form of a Memorandum of Understanding on trade
in textile and clothing products between the European Community and the Democratic
Socialist Republic of Sri Lanka initialled in Brussels on 5 December 2000 and more
particularly with reference to Paragraph 6 thereof
recorded their
understanding that non-tariff barriers related to all forms of hindrance to trade in the
sector, include but are not limited to matters such as:

the Parties

•

•

•

•

•

•

•

•

•

any additional duties on the import or sale of products of EU origin in excess of the
custom duties set out in the Agreement, or any other taxes of equivalent effect, which
are higher than any such duties or taxes imposed on the production or sale of
equivalent domestic goods

technical regulations or standards, or conformity assessment or certification rules,
procedures or practices going beyond the purposes for which they are required

any formal or informal minimum import price requirement, or other customs
valuation rules, procedures or practices giving rise to barriers to trade

rules, procedures or practices for pre-shipment inspection that are discriminatory,
non-transparent, excessively lengthy or the imposition of customs controls for the
clearance of goods to shipments that have been subject of pre-shipment inspection

excessively burdensome, costly or arbitrary rules, procedures or practices concerning
the certification of the origin of products or requiring direct shipment of goods from
the country of origin to the country of destination

any non-automatic or discretionary licensing requirements, or any automatic
licensing rules, procedures or practices imposing disproportionate burdens or having
restrictive effects on imports

requirements or practices concerning marking,
the description or
composition of the product or the description of the manufacturing of products which,
either in their formulation of in their application, are in any form discriminatory as
compared with domestic products

labeling,

unduly long customs clearance delays or excessively burdensome, excessive or costly
customs procedures, including inspection requirements, which have an unnecessary
restrictive effect on imports

subsidies causing injury to the EU textiles and clothing industry.

25

Declaration

In the context of the Agreement in the form of a Memorandum of Understanding on trade
in textile and clothing products between the European Community and the Democratic
Socialist Republic of Sri Lanka and the Agreed Minute thereto initialled in Brussels on 5
December and more particularly with reference to the possible reintroduction of quotas in
the event of a failure by Sri Lanka to fulfil the obligations referred to in Point 6 the
Parties declare that the commitments taken concerning non-tariff barriers are bilateral
commitments entered into between the parties independently of any multilateral
commitments also applicable to the Parties.
In consequence the Parties agree that the
application of these provisions is of a purely bilateral nature. The Parties further agree
that these bilateral commitments are not intended to go beyond or place them under
higher standards or obligations than the level of commitments they have entered into in a
multilateral context.

26