CELEX: 51992PC0118
Language: en
Date: 1992-03-26
Title: 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 FEDERATIVE REPUBLIC OF BRAZIL ON TRADE IN TEXTILE PRODUCTS

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tiiwx COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM(92) 118 final
                                                       Brussels, 26 March 1992
                                      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 FEDERATIVE REPUBLIC
                          OF BRAZIL ON TRADE IN TEXTILE PRODUCTS
                              (presented by the Commission)
 ---pagebreak---                                                                   <
                           EXPLANATORY MEMORANDUM
1. The Council Decision of 14 May 1991 authorized the Commission to
   negotiate both the renewal of bilateral textile agreements for 12 months
   (1992) and the protocol extending the MFA for a period of 17 months from
   1 August 1991 to 31 December 1992.
2. The Council Decision of 21 September 1991 approved the Decision
   concluding the Protocol maintaining the MFA in force until
   31 December 1992 adopted by the Textiles Committee on 31 July 1991.
   The Commission has negotiated and initialled the renewal of identical
   bilateral textiles agreements with all the non-Community countries for
   one year. The Council decided on 19 December 1991 to conclude the
   agreements that had already been initialled.
3. On 20 December 1991 the Commission initialled an Agreement in the form
   of an Exchange of Letters with Brazil, which accepted only a three-month
   extension (1 January-31 March 1992). The quotas agreed have been
   adjusted pro rata temporis. This agreement was applied provisionally
   from 1 January 1992 by the Council Decision of 10 February 1992.
4. As a result of the subsequent consultations held on 26 and 27 February,
   a new Agreement in the form of an Exchange of Letters, replacing the
   Exchange of Letters of 20 December and extending the existing Agreement
   from 1 January 1992 until 31 December 1992 has been initialled.
S Consequently, it is proposed that the Council approve on behalf of the
   Community the draft Decision concerning the conclusion of the Agreement
   in the form of an Exchange of Letters extending for 1992 the Agreement
   between the European Economic Community and the Federative Republic of
   Brazil.
 ---pagebreak---                                                                     3
              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 FEDERATIVE REPUBLIC OF BRAZIL 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 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 Federative Republic of
Brazil on trade in textile products for twelve months (1 January to
31 December 1992);
Whereas the two parties have agreed that this Agreement should replace the
Agreement in the form of an Exchange of Letters initialled on
20 December 1992 and implemented on 10 February 1992 by the Council on a
provisional basis for three months (1 January to 31 March 1992) 1 ;
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 Federative
   Republic of Brazil on trade in textile products is approved on behalf of
   the 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.
1  Council Decision 92/114/EEC of 10 February 1992, OJ No L 43, 19.2.1992,
   p. 25.
 ---pagebreak---                                                                 1
                                 Art icie 2
1. This Decision shall enter into force on the third day following its
   publication in the official journal of the European Communities. It
   shall apply from 1 January 1992.
2. Council Decision 92/114/EEC of 10 February 1992 is hereby repealed when
   this Decision enters into force.
Done at Brussels,                               For the Council
                                                The President
 ---pagebreak---                                                              ^
                       A G R E E M E N T
        in the form of Exchange of Letters amending the
     Agreement between the European Economic Community and
the Federative Republic of Brazil   on trade in textile products
 ---pagebreak---                                                                           £
                                   AGREEMENT
             in the form of Exchange of Letters amending the
          Agreement between the European Economic Community and
     the Federative Republic of Brazil      on trade in textile products
                              Letter Number One
Sir,
1.   I have the honour to refer to the consultations held on 26 and 27
February 1992 between our      respective delegations for     the purpose of
amending   the  Agreement   on   trade   in  textile  products   between  the
European  Economic   Community   and   the Federative   Republic  of  Brazil,
initialled on 12 September 1986 and applied since 1 January 1987, as
extended by the Exchange of Letters initialed on 20 December 1991.
2.  As a result of these consultations, both parties agreed to further
amend Article 17, paragraph 1 of the above Agreement so as to extend
the period of application of all the provisions of the Agreement until
31 December 1992.    Consequently, the parties also agreed to amend Annex
II of the Agreement for the January - December period 1992 as regards
the quantitative    limits for exports from the Federative Republic of
Brazil to the Community    of the textile products referred thereto.      The
modified Annex II is appended to this letter (Appendix 1 ) .
3.  The parties also agreed that as regards Article 13, paragraph 3,
of the Agreement, the percentage of        inter-regional  transfers for the
year 1992 is fixed at 40%.
                                                                              •?
                                                                                k
 ---pagebreak---                                     - 2 -
     It  is understood  that  i f as a result of the application of the
above percentage serious difficulties, following significant changes in
the pattern of trade, occur     in certain regions of the Community, both
parties shall hold consultations without delay with a view to reviewing
the situation.
4.  Both parties agreed    that   this extension of   the Agreement  enters
into   force  on  1  January  1992   , shall   remain   in force  until  31
December 1992 and shall replace the Exchange of Letters of 20 December
1991. The parties agreed that this Agreement      is applied provisionally
from 1 January   1992.
5.   I should be obliged if you would kindly confirm the acceptance of
your Government to the foregoing.
6.  Please accept, Sir, the assurance of my highest consideration.
                                          For the CounciI
                                  of the European Communities
                                                                         < Ul
 ---pagebreak---                                                                               &
                                                                   APPENDIX 1
                                     ANNEX I I
                         COMMUNITY QUANTITATIVE LIMITS
CATEGORY                       UNIT                      1/1/92-31/12/92
1                               T                        35.140
2                               T                        21.975
2a)                             T                         4.593
3                               T                         2.086
6< 1 )                      LOOOpieces                    2.974
9                               T                         6.153
20                              T                         3.817
39                              T                         2.960
46                              T                        17.151
                                REGIONAL LIMITS
                                  1000 pieces        F           463
                                                     I         5.110
                                                    UK        3.285
13                                 1000 pieces      ES           380
                                                    PT            63
(1) For the purpose of setting off exports against the agreed        limits a
       conversion  rate of 5 garments     (other than babies'garments) of a
       maximum commercial size of 130 cm, for 3 garments whose commercial
       size exceeds 130 cm may be applied for up to 5% of the quantitative
       I i mi t s.                                                              -^ /
                                                                                  1%
 ---pagebreak---                                                                                3
                                            AGREEMENT
                      in the form of Exchange of Letters amending       the
                   Agreement between the European Economic Community and
              the Federative Republic of Brazil on trade in textile products
                                       Letter Number Two
        Sir,
             I have the honour      to acknowledge     receipt of your    letter of  27
        February 1992 , which reads as follows :
        "1.    I have the honour to refer to the consultations held on 26 and 27
        February 1992     between our respective delegations for the purpose of
        amending    the  Agreement    on  trade   in   textile  products   between  the
        European    Economic  Community    and  the   Federative   Republic  of  Brazil
        initialled on 12 September 1986 and applied since 1 January 1987, as
        extended by the Exchange of Letters initialed on 20 December 1991.
        2.  As a result of these consultations, both parties agreed to further
        amend Article 17, paragraph 1 of the above Agreement so as to extend
        the period of application of all the provisions of the Agreement until
        31 December 1992.     Consequently, the parties also agreed to amend Annex
        II of the Agreement       for  the January-December     period as regards the
        quantitative limits for exports from the Federative Republic of Brazil
        to   the   Community   of   the  textile    products   referred   thereto.  The
        modified Annex II is appended to this letter (Appendix 1).
/ ' • /
 ---pagebreak---                                                                               ^
                                                                                o
      3.  The parties also agreed that as regards Article 13, paragraph 3,
      of the Agreement, the percentage of     inter-regional  transfers for the
      year 1992 is fixed at 40%.
           It is understood  that  if as a result of    the application of the
      above percentage serious difficulties, following significant changes in
      the pattern of trade, occur    in certain regions of the Community, both
      parties shall hold consultations without delay with a view to reviewing
      the situation.
      4.  Both parties agreed   that   this extension of   the Agreement enters
      into force on 1 January   1992, shall remain in force until 31 December
      1992 and shall  replace the Exchange of Letters of 20 December      1991.
     The parties agreed that this Agreement     is applied provisionally from 1
     January   1992.
     5.   I should be obliged if you would kindly confirm the acceptance of
     your Government to the foregoing."
          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 Federative Republic of Brazil
/" t\
                                                                                  V k\
                                                                                  \{,x-
 ---pagebreak---                                                                     ^
                                                             APPENDIX 1
                                ANNEX I I
                     COMMUNITY QUANTITATIVE LIMITS
CATEGORY                   UNIT                     1/1/92-31/12/92
1                           T                       35.140
2                           T                       21.975
2a)                         T                        4.593
3                           T                        2.086
6(D                     1.OOOpieces                  2.974
9                           T                        6.153
20                          T                        3.817
39                          T                        2.960
46                          T                       17.151
                            REGIONAL LIMITS
                             1000 pieces        F          463
                                                I        5.110
                                               UK        3.285
13                            1000 pieces      ES          380
                                               PT           63
(1) For the purpose of setting off exports against the agreed limits a
    conversion rate of 5 garments    (other than babies'garments) of a
    maximum commercial size of 130 cm, for 3 garments whose commercial
    size exceeds 130 cm may be applied for up to 5% of the quantitative
    I i m i t:; .
 ---pagebreak---                                                                       '<,
                               EXCHANGE OF NOTES
    The Directorate General for External Relations of the Commission of
the European Communities presents its compliments to the Mission of the
Federative Republic of      Brazil   with the European Communities and has
the honour    to refer  to the Agreement     in textile products negotiated
between    the   Federative    Republic   of   Brazil   and   the   Community,
initialled on 12 September 1986       and applied since 1 January 1987, as
extended by the exchange of letters initialled on 27 February 1991..
    The Directorate General wishes to inform         the Mission that whilst
awaiting the completion of the necessary procedures for the conclusion
and the coming    into force of the extended Agreement, the Community is
prepared   to allow the provisions of the Agreement        to apply de facto
from 1 January 1992.     This is on the understanding that either party
may at any time terminate this de facto application of the extended
Agreement provided that 60 days' notice is given.
    The Directorate General for External Relations would be grateful if
the Mission would confirm its agreement to the foregoing.
    The Directorate General      for External    Relations avails    itself of
this opportunity to renew to the Mission of        the Federative Republic of
Brazil   to  the   European   Communities   the   assurance  of   its  highest
considerat ion.
                                                                               \M
 ---pagebreak---                                                                             Is
                                EXCHANGE OF NOTES
     The Mission of the Federative Republic of Brazil              to the European
Communities    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 Directorate General's          Note of
regarding    the Agreement    in textile     products    negotiated    between   the
Federative    Republic of Brazil      and   the Community,       initialled on    12
September   1986 and applied since 1 January           1987, as extended by the
exchange of letters initialled on 27 February 1991,
     The  Mission   wishes   to confirm     to   the   Directorate    General   that
whilst   awaiting   the completion    of   the necessary      procedures    for  the
conclusion and the coming        into force of     the extended Agreement,       the
Government of the Federative Republic of Brazil             is prepared to allow
the provisions of      the extended    Agreement     to apply    de  facto   from 1
January 1992.This is on the understanding that either party may at any
time   terminate  this de    facto application       of  the extended     Agreement
provided that 60 days' notice is given.
     The Mission of the Federative Republic of Brazil             to the European
Communities    avails    itself   of   this    opportunity     to   renew   to   the
Directorate General for External Relations the assurance of his highest
considerat ion.
 ---pagebreak---  ---pagebreak---                                                                           ISSN 0254-1475
                                                                   COM (92) 118 final
                                                           DOCUMENTS
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     EN                                                                               n
                                      Catalogue number: CB-CO-92-129-EN-C
                                                                  ISBN 92-77-42368-4
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