CELEX: 51989PC0522
Language: en
Date: 1989-10-20
Title: PROPOSAL FOR A COUNCIL DECISION CONCERNING THE PROVISIONAL APPLICATION OF AN AGREED MINUTE MODIFYING THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND HONG KONG ON TRADE IN TEXTILE PRODUCTS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                             C0MC89) 522 final
                                             Brussels, 20 October 1989
                              Proposal for a
                            COUNCIL DECISION
  concerning the provisional application of an Agreed Minute modifying
  the Agreement between the European Economic Community and Hong Kong
                      on trade in textile products
                      (presented by the Commission)
 ---pagebreak---                            EXPLANATORY MBCRA1PIM
1. The attached Council proposal concerns the adjustment of the quotas for
categories 4, 5, 7 and 63, agreed on with Hong Kong during the negotiations
on the bilateral textile agreement, following the introduction of the
Harmonized System.
2. It Is proposed that the above-xoentloned amendment to the bilateral
agreement with Hong Kong on trade In textile products should be applied
provisionally with effeot from 1 January 1989.
3. The amendment Is set out In the agreed minute initialled on 13 June
following the consultations held with Hong Kong on this matter.
It Involves Increasing the quota for oategory 5 by a quantity negotiated on
the basis of the trade recorded in 1988 for products newly incorporated in
that oategory following the entry into foroe of the Harmonized System and
reducing the quotas for categories 4, 7 and 83 by equivalent quantities.
4. The Council is requested to adopt a decision concerning the provisional
application of the abovementioned amendment to the bilateral trade
agreement with Hong Kong.
 ---pagebreak---                                         - 2 -
                            PROPOSAL FOR A OCCNCIL DBCISICN
                  ON THE PROVISIONAL APPLICATION OF At? AGREED MINUTE
            AMENDING THE ASSEOIENT BETWEEN THE EDRQPEAN ECONOMIC COMMDNITÏ
                     AND HONG KONG ON TRADE IN TEXTILE PRODUCTS
Consultations were held between the Community and Hong Kong on 13 June 1969
at Hong Kong's request, and it was agreed at these consultations that the
quota adjustment agreed on during the renegotiation of the abovementioned
agreement should b e made.
The Commission has set out In this document the reasons justifying the
amendment and requests the Council to adopt a decision on the provisional
application of the amendment to the bilateral trade agreement with
nififlfltf Kong*
                                           *
1. When, in 1986, the bilateral multifltare textile agreements were
renegotiated, oertain quantitative limits were adjusted to allow for the
classification changes made by the Community with a view to the
introduction of the Harmonized System. Certain additional adjustments must
be made following the entry Into foroe of the Combined Nomenclature on
1 January 1988.
2. Since 1 January 1989, the quota for category 5 has covered certain
products in categories 4, 7 and 83. In order to ensure the neutrality of
the conversion from the OCT and Nlmexe to the Combined Nomenclature,
categories 8, 4, 7 and 83 should b e adjusted.
3. At Hong Kong's request, consultations were held in Brussels on 13 June
in order to settle the matter.
 ---pagebreak---                                    - 3 -
With the Member States' help, the Commission agreed with Hong Kong to
increase the oategory 5 quota and to reduce the oategory 4, 7 and 83 quotas
by equivalent amounts negotiated on the basis of trade in 1988.
4. An agreed minute containing the aiove-mentioned amendments to be made to
the bilateral agreement was initialled on 13 June 1989 (see Annex).
5. The Commission therefore proposes to the Council that it take a decision
to apply provisionally the agreed minute Initialled on 13 June 1989
amending the bilateral agreement on trade in textiles initialled by the
Community and Hong Kong on 2 October 1986 pending the formal conclusion of
the agreement and of the above-mentioned minute and subject to provisional
application by Hong Kong on a reciprocal basis.
                                                                    y
 ---pagebreak---          S
    y4
                                                              Proposal for a
                                                            COUNCIL DECISION
                   concerning the provisional application of an Agreed Minute modifying
                    the Agreement between the European Economic Community and Hong Kong
                                                   on trade in textile products
        THE COUNCIL OF THE EUROPEAN COMMUNITIES,                       HAS DECIDED AS FOLLOWS:
        Having regard to the Treaty establishing the European
        Economic Community, and. in particular Article 113                                        Article 1
        thereof,
                                                                       Pending the completion of the procedures necessary for its
                                                                       conclusion, the Agreed Minute modifying the Agreement on
        Having regard to the proposal from the Commission,
                                                                       trade in textile products between the European Economic
                                                                       Community and Hong Kong shall be applied provisionally in
        Whereas, pending the completion of the procedures              the Community, •                                    . provided
        necessary for its conclusion, the Agreement between the        that there is reciprocal provisional application on the part of
4(A     European Economic Community and Hong Kong on trade in          Hong Kong-s»j >W cV^ocV X H « ~ ^ *• Jv^^^^^H \<*2
        textile products, initialled on 2 October 1986, has been
        provisionally applied since 1 January 1987 in accordance, for  The text of the Agreed Minute is attached to this
        the Community's part, with Decision 88/213/EEC (»);            Decision.
        Whereas that Agreement provides for the possibility of
        quantitative adjustments to the quotas for certain categories,                             Article 2
        in order to allow the introduction of the combined
        nomenclature;                                                  The Commission is invited to seek the agreement of the
                                                                        Government of Hong Kong on the provisional application of
                                                                        the Agreed Minute referred to in Article 1 and to notify the
        Whereas following consultations between the Community
                                                                        Council thereof.
S H-."V and Hong Kons an Agreed Minute modifying the quotas of
  \ n-2 catégorie* *         products provided for in the Agreement
         was initialled on \ "Ç "^"«AWSC- *^%*\ '
                                                                        Done at Brussels,
         Whereas pending the completion of the procedures necessary
         for the conclusion of the Agreement and the Agreed Minute,
         the Agreed Minute should be applied provisionally,                                                     For the Council
               ...        .                 provided that there is a
         reciprocal provisional application on tne part of Hong
^~       Kong, ^ , N V           « S ^ - v \ V<©>«- •*• ^o^vjoca
          \ <\%<\
         (') OJ No L 97, 14. 4. 1988, p. 1.
 ---pagebreak---                                  AGREED MINUTE
       A delegation of the Hong Kong Government and a delegation of the
       European Community met in Brussels on 13 June 1989 for
       consultations on problems arising from the adoption, following
       introduction of the Harmonised Syste-i, of clarification by the
       CCC that short knitted garments with ribbing at the bottom should
       be classified under Category 5, and the pursuant change adopted
       by the EC to classify these garments under Category. The
       consultations were conducted in accordance with Article 14(3) of
       the Agreement on Trade in Textile Products between Hong Kong and
       the Community initialled on 2 October 1986 in Brussels.
    2. As a result of the consultations and having regard to the
       migration of short knitted garments with ribbing at the bottom
       from Categories 4, 7 and F 3 to Category 5, the two parties agreed
       to add the following quantities to the quantitative limits for
       Category 5 established in Annex II of the said Agreement :
       1989          108.000
       1990          109.000
       1991          110.000
    3. It was further agreed that the regional shares for Category 5 for
       the year 1989 will be increased in consequence of the additional
       quantity for Category 5 referred to in paragraph 2 above by the
        following quantities :
                                                 Additional Quantity
                     Region                        in 1000 pieces
                      FRG                                  7
                      FRA                                  3
                      UK                                  94
                      IRE                                  4
/ •
 ---pagebreak---                                 - 2 -
4. As regards the regional shares for Categories 4, 7 and 83 for the
   year 1989, it was agreed that they will be decreased in
   consequence of the quantities to be deducted from Category 5
   referred to in paragraph 3 above by the following quantities :
   (1000 pieces)           FRG      FRA       UK        IRE
   Cat. 4                   4    -    3   4
   Cat. 7                             3
   Cat. 83   (tonnes)                         11
   Brussels, 13 June 1989.
    Delegation of the Hong Kong          Delegation of the European
           Government                       Economic Con?nunity
           -* &S--                           <'7        1
                                                 > Oh !
          y\
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (89) 522 final
                                                      DOCUMENTS
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EN
                                Catalogue number : CB-CO-89-476-EN-C
                                                             ISBN 92-77-53915-1
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