CELEX: 21973A0705(01)
Language: en
Date: 1973-06-04 00:00:00
Title: Agreement between the European Economic Community and the Socialist Federal Republic of Yugoslavia on trade in cotton textiles

No L 182/2                         Official Journal of the European Communities                              5 . 7. 73
                                                      AGREEMENT
             between the European Economic Community and the Socialist Federal Republic of
                                        Yugoslavia on trade in cotton textiles
             THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
             of the one part,
             THE GOVERNMENT OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA,
             of the other part,
             DESIRING to ensure the orderly development of trade in cotton textiles between the European
             Economic Community, hereinafter called 'the Community', and Yugoslavia ;
             AWARE of the rights and obligations of the Contracting Parties under the General Agreement
             on Tariffs and Trade;
             AWARE that the following provisions are intended to deal with the special problems of trade
             in cotton textiles between Yugoslavia and the Community and are not to be considered as
             lending themselves to application in other fields;
             HAVE DECIDED, in a spirit of mutual cooperation, to conclude this Agreement and to this end
             have designated as their Plenipotentiaries:
             THE COUNCIL OF THE EUROPEAN COMMUNITIES :
             Mr. Wolfgang ERNST,
             Director at the Directorate-General for
             External Trade of the Commission of the
             European Communities ;
             THE GOVERNMENT OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA :
              Madam Milica ZIBERNA,
             Assistant Federal Secretary for
             External Trade;
             WHO HAVE AGREED AS FOLLOWS :
                         Article 1                              application of those at present in force so long as
                                                                imports of cotton textiles originating in and
This Agreement shall apply to the cotton textiles               despatched from Yugoslavia do not exceed the
originating in and despatched from Yugoslavia and               ceilings fixed in Article 3 .
listed in Annex I.
                                                                                          Article 3
                         Article 2
                                                                1 . The overall ceiling which is the subject of this
Yugoslavia undertakes to take appropriate measures              Agreement shall be 17 280 metric tons per year,
to ensure that its exports of cotton textiles to the            Community outward processing traffic being
Community do not exceed the ceilings fixed in                   excluded from this ceiling.
Article 3 .
                                                                2. This annual overall ceiling shall be subdivided
The Community undertakes not to introduce new                   into ceilings by groups of categories of products as
quantitative restrictions and to suspend the                    follows :
 ---pagebreak---  5 . 7. 73                          Official Journal of the European Communities                            No L 182/3
                                               Metric tons     ensure that exports of cotton textiles of all categories
 Group I                                                       are phased as evenly as possible over each yearly
                                                               period, due account being taken, in particular, of
               (Woven fabrics of cotton ,                      seasonal factors. Imports so authorized shall be
              unbleached or bleached,                          deducted from the ceilings for the following yearly
              whether or not mercerised )                      period.
          — intended for the internal market 10 406
          — intended for re-exportation           3 794
                                        total    14 200                                 Article S
                                                               The ceilings shown in the Agreement shall be
 Group II                                                      managed under dual supervision.
              ( Other woven fabrics of cotton,
              made-up articles and
              miscellaneous articles of cotton    3 080                                 Article 6
                                                              The Contracting Parties shall communicate to one
3.      In order to prevent excessive concentration of        another all useful information on the trade between
trade in certain products , the Contracting Parties           the Community and Yugoslavia in textile products.
may agree on specific ceilings by sub-categories              For this purpose they shall apply their own
within the limits of the ceilings set out in paragraph 2.      classification and shall cooperate in facilitating
                                                              comparison of the information supplied.
If, in one of the yearly periods, the Community
finds that deliveries of certain sub-categories of
products for which no specific ceilings have been
fixed have rapidly and substantially increased, it may                                  Article 7
request that a specific ceiling be fixed. "Where such a
request is made consultation shall            be initiated    The Contracting Parties shall cooperate in taking the
between the two Parties without delay in order to             appropriate measures to ensure that this Agreement
 agree on the specific ceiling for the sub-category in        is not evaded by means of practices involving
question.                                                      re-exportation or re-routing.
                                                              Where the Community has reason to suspect that
                                                              imports from Yugoslavia did not originate in that
                         Article 4                            country, it may call for consultations with Yugoslavia
                                                              to facilitate the determination of the origin of the
 1.     Yugoslavia may transfer up to 10% of the              products in question.
quantities fixed for Group II to Group I.
It may transfer unused quantities within a specific
ceiling to another specific ceiling provided the                                        Article 8
quantity thus transferred does not exceed 10 % of
the specific ceiling to which the transfer is made, or        1.     If imports into the Community of certain
to other sub-categories within the same category              textiles of fibres in direct competition with cotton
which are not subject to specific ceilings.                   cause, or threaten to cause, a disturbance of the
                                                              market, and in particular where such imports
2.      Yugoslavia may carry forward a quantity within        increase in such a way that this Agreement could be
the ceiling for one of the groups of categories which         evaded, the Community may request consultations
has not been used during the yearly period in which           with Yugoslavia in order to agree on measures to be
the ceiling is applied and add it to the ceiling for the      taken to remedy this situation. The request for
same group for the following yearly period, within a          consultations shall be accompanied by a detailed and
limit of 10 % of the ceiling in question, provided no         substantiated statement of the reasons and the
other quantities have been carried forward or                 justification for its submission.
transferred to that ceiling.
                                                              2.     If these consultations do not result in agreement
3 . Within a limit of 10 % of each of the ceilings,           within the period of 60 days following the request,
the Community shall authorize advance imports                 the Community shall be entitled to take such
against the ceiling established for the following             protective measures as are provided for in the second
yearly period, if Yugoslavia so requests in writing in        paragraph of Article III of the Trade Agreement
good time. Yugoslavia shall, however, endeavour to            between the Community and Yugoslavia.
 ---pagebreak--- No L 182/4                           Official Journal of the European Communities                               5 . 7. 73
                          Article 9                             It shall enter into force on the day following the date
                                                                on which the Contracting Parties have notified each
Should one of the Parties inform the other that the             other of the completion of the necessary procedures.
application of the Agreement has given rise to
difficulties affecting the maintenance of trade relations       Its term of validity shall be extended for one year if
between importers and their suppliers, the two                  neither of the Parties has denounced it one month
Parties shall take all necessary measures to ensure             before its expiry.
that these trade relations are maintained.
                                                                2. Each Party reserves the right to adapt the
                                                                 provisions in the light of the results of future
                                                                multilateral trade negotiations.
                           Article 10
                                                                3.     The Annexes to this Agreement shall form an
The Contracting Parties shall consult each other, at             integral part thereof.
the request of either, on all problems arising from
the implementation of the Agreement.
                                                                                         Article 12
                          Article 11                             This Agreement is drawn up in duplicate in the
                                                                 Danish, Dutch, English, French, German, Italian and
1 . This Agreement is concluded for a period of one              Serbo-Croat languages, each of these texts being
year from 1 January 1973 .                                       authentic.
               Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne aftale.
               Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter
               dieses Abkommen gesetzt.
               In witness whereof, the undersigned Plenipotentiaries have affixed their signatures
               below this Agreement.
               En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du
               présent accord.
                In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al
                presente accordo.
                Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder deze
                Overeenkomst hebben gesteld.
                U potvrdu eega dole potpisani, propisno ovlasceni u tu svrhu, potpisali su ovaj Sporazum .
                Udfærdiget i Bruxelles, den attende april nitten hundrede og treoghalvfjerds.
                Geschehen zu Brüssel am achtzehnten April neunzehnhundertdreiundsiebzig.
                Done at Brussels on the eighteenth day of April in the year one thousand nine
                hundred and seventy-three.
                Fait à Bruxelles, le dix-huit avril mil neuf cent soixante-treize.
                Fatto a Bruxelles, addì diciotto aprile millenovecentosettantatré.
                Gedaan te Brussel, de achttiende april negentienhonderd drieënzeventig.
                 Sacinjeno u Brislu, osamnaestoga aprila hiljadu devet stotina sedamdeset i trece godine.
 ---pagebreak--- 5 . 7. 73                        Official Journal of the European Communities                       No L 182/5
          For Rådet for De europæiske Fællesskaber
          Im Namen des Rates der Europäischen Gemeinschaften
          For the Council of the European Communities
          Pour le Conseil des Communautés européennes
          Per il Consiglio delle Comunità europee
          Voor de Raad der Europese Gemeenschappen
          Za Savet Evropskih Zajednica
          Med det forbehold, at Det europæiske økonomiske Fællesskab først vil være endeligt
          forpligtet, efter at det er blevet meddelt den anden kontraherende part, at de fremgangs­
          måder, der er foreskrevet i traktaten om oprettelse af Det europæiske økonomiske
          Fællesskab er gennemført.
          Mit dem Vorbehalt, daß für die Europäische Wirtschaftsgemeinschaft erst dann end­
          gültig eine Verpflichtung besteht, wenn sie der anderen Vertragspartei notifiziert hat,
          daß die durch den Vertrag zur Gründung der Europäischen Wirtschaftsgemeinschaft
          vorgeschriebenen Verfahren abgeschlossen sind.
          Provided that the European Economic Community will be finally committed only after
          notifying the other Contracting Party of the completion of the procedures required by
          the Treaty establishing the European Economic Community.
          Sous réserve que la Communauté économique européenne ne sera définitivement engagée
          qu'après notification à l'autre partie contractante de l'accomplissement des procédures
          requises par le traité instituant la Communauté économique européenne.
          Con la riserva che la Comunità economica europea sarà definitivamente impegnata solo
          dopo notifica all'altra Parte contraente dell'espletamento delle procedure richieste dal
          trattato che istituisce la Comunità economica europea.
          Onder voorbehoud dat de Europese Economische Gemeenschap slechts definitief zal
          zijn gebonden na kennisgeving aan de andere Partij bij de Overeenkomst van de
          voltooiing van de procedures die noodzakelijk zijn uit hoofde van het Verdrag tot
          oprichting van de Europese Economische Gemeenschap.
          Uz rezervu da cé Evropska Ekonomska Zajednica biti definitivno angazovana tek posle
          notifikacije drugoj Strani Ugovornici o izvrsenju procedura koje zahteva Ugovor o
          osnivanju Evropske Ekonomske Zajednice.
          For regeringen for Den Socialistiske føderative republik Jugoslavien
          Im Namen der Regierung der Sozialistischen Föderativen Republik Jugoslawien
          For the Government of the Socialist Federal Republic of Yugoslavia
          Pour le gouvernement de la république socialiste fédérative de Yougoslavie
          Per il governo della Repubblica socialista federativa di Iugoslavia
          Voor de Regering van de Socialistische Federatieve Republiek Joegoslavië
          Za Vladu Socijalisticke Federativne Republike Jugoslavie
 ---pagebreak--- No L 182/6                       Official Journal of the European Communities                              5 . 7. 73
                                                     ANNEX I
                LIST OF COTTON TEXTILE PRODUCTS REFERRED TO IN ARTICLE 1 OF THE
                                                  AGREEMENT
           ' Cotton textiles' shall mean the products listed below in which cotton represents more
           than 50 % (by weight) of the fibre content, with the exception of fabrics manufactured
           by craftsmen on hand looms.
               Group of                   Sub­
               categories  Categories  categories                    Description of products
              GROUP i                              COTTON FABRICS, UNBLEACHED OR
                                                   BLEACHED, MERCERIZED OR NOT
                               B                   COTTON FABRICS, UNBLEACHED
                                           B 1     Terry towelling and similar terry fabrics
                                           B2      Woven fabrics other than gauze or terry towelling and
                                                   similar terry fabrics, containing less than 85 °/o by
                                                   weight of cotton
                                           B3      Woven fabrics other than gauze or terry towelling and
                                                   similar terry fabrics, containing 85 % or more by
                                                   weight of cotton, plain weave, weighing more than
                                                   70 but not more than 130 g per square metre, of a
                                                   width of more than 115 cm but not more than 165
                                                   cm, made only with a yarn numbered less than 55 000
                                                   m/kg (English number 32)
                                           B4      Woven fabrics other than gauze or terry towelling
                                                   and similar terry fabrics, containing 85 °/o or more by
                                                   weight of cotton, plain weave, weighing not more
                                                   than 130 g per square metre, other than those under
                                                   B 3
                                           B5      Woven fabrics other than gauze or terry towelling and
                                                   similar terry fabrics, containing 85 °/o or more by
                                                   weight of cotton, plain weave, of a cotton weight
                                                   of more than 130 g but not more than 200 g per
                                                   square metre, of a width of at least 85 cm but not
                                                   more than 115 cm
                                           B6      Woven fabrics other than gauze or terry towelling and
                                                   similar terry fabrics, containing 85 °/o or more b>
                                                   weight of cotton, plain weave, weighing more than
                                                   130 g but not more than 200 g per square metre, ot
                                                   a width of more than 115 cm
                                           B7      Woven fabrics other than gauze or terry towelling
                                                   and similar terry fabrics, containing 85 °/o or more by
                                                   weight of cotton, of a width of a least 85 cm, other
                                                   than plain weave
                                           B8      Other woven fabrics
                               C                   WOVEN FABRICS OF COTTON OTHER THAN
                                                   UNBLEACHED
                                           CI      Bleached, whether or not mercerized
              GROUP n                              OTHER WOVEN FABRICS OF COTTON, MADE­
                                                   UP ARTICLES AND MISCELLANEOUS ARTICLES
                                                   OF COTTON
                                           C2      Gauze other than unbleached or bleached
                                           C3      Terry towelling and similar terry fabrics, other than
                                                   unbleached or bleached
 ---pagebreak--- 5 . 7 . 73                   Official Journal of the European Communities                               No L 182/7
           Group of                  Sub­
           categories Categories  categories                       Description of products
                                      C4       Woven pile fabrics and chenille fabrics (other than
                                               terry towelling or similar terry fabrics of cotton
                                               falling within heading No 55.08 and fabrics falling
                                                within heading No 58.05)
                                      C5        Woven fabrics other than gauze or terry towelling and
                                                similar terry fabrics, dyed
                                      C6       Woven fabrics other than gauze or terry towelling and
                                               similar terry fabrics, printed
                                      C7       Woven fabrics other than gauze or terry towelling
                                               and similar terry fabrics, made with yarns of various
                                               colours
                         D                     MADE-UP HOUSEHOLD ARTICLES OF COTTON
                                     D 1       Bed linen
                                     D 2       Table linen
                                     D 3       Terry toilet linen and terry kitchen linen
                                     D4        Other household articles
                         E                     ARTICLES OF APPAREL OF COTTON
                                      El       Gloves, mittens and mitts, knitted or crocheted, not
                                               elastic nor rubberized
                                      E2       Undergarments, knitted or crocheted, not elastic nor
                                               rubberized
                                      E3       Outer garments and other articles, knitted or
                                              crocheted, not elastic nor rubberized. Articles other
                                               than knitted or crocheted fabrics, elastic or rubberized
                                      E4       Men's and boys' trousers and breeches of woven
                                              fabric
                                      E5       Other woven outer garments for men and boys
                                     E6       Women's, girls' and infants' outer garments of woven
                                              fabric
                                     E7       Men's and boys' shirts of woven fabric
                                     E 8      Men's and boys' other undergarments of woven
                                              fabric
                                     E9       Women's, girls' and infants' undergarments of woven
                                              fabric
                                     E 10     Handkerchiefs
                                     Ell      Other articles of apparel and clothing accessories
                         F                    MISCELLANEOUS FABRICS AND MADE-UP
                                              ARTICLES OF COTTON
                                     F 1      Travelling rugs and blankets
                                     F2       Floor cloths, dishcloths, dusters, and the like
                                     F3       Pneumatic mattresses
                                     F4       Other
 ---pagebreak--- No L 182/8        Official Journal of the European Communities 5 . 7. 73
                                     ANNEX U
           Letter No 1 — Dual supervision
           Letter No 2 — Re-exportation
           Letter No 3 — Transit and freedom of trade
           Letter No 4 — 105 °/o Clause
           Letter No 5 — Substitute products
           Letter No 6 — Territory of application
           Letter No 7 — Consultations
           Letter No 8 — Development of trade
 ---pagebreak--- 5 . 7. 73                          Official Journal of the European Communities                             No L 182/9
                                                        Letter No 1
                                                                            Brussels,
           Madam,
           At the conclusion of the negotiations between the Yugoslav Government and the Community
           which led this day to the signature of the Agreement on trade in cotton textiles, the two
           Parties agreed on the following:
           Imports of cotton textiles from Yugoslavia will be administered on the basis of a system of
           dual supervision.
           The authorities of the Member States of the Community will, automatically and without delay,
           authorize imports of cotton textile products on submission of the importer's application
           accompanied by the original of the export authorization. These export authorizations will be
           issued by the Yugoslav authorities up to the total amount of the agreed ceilings.
           The export authorization issued by the Yugoslav authorities shall apply to the products referred
           to in Article 1 of the Agreement.
           The export authorization must contain the following information:
          1 . Destination,
          2. Serial number,
          3. Importer's name and address,
          4.  Exporter's name and address,
          5.   Net weight (in kilogrammes or metric tons) and value,
          6.   Category and classification of product,
          7.   Certificate issued by the Yugoslav authorities showing that the quantity has been debited
               against the agreed ceiling for exports to the Community.
           The authorities of the Member States of the Community will not raise difficulties in the event
          of a discrepancy between the weight indicated in the export authorization and the shipment or
          import weight, provided that it is within reasonable limits, while the Yugoslav authorities will
          for their part endeavour to keep any discrepancies to a minimum.
          In the event of total or partial withdrawal of an export authorization, the Yugoslav authorities
          will notify the authorities of the Member States of the Community thereof. The authorities of
          the Member States of the Community will take appropriate measures under the administrative
          provisions in force.
          The Yugoslav authorities will forward to the authorities of the Member States of the
          Community, via the Embassies of the Member States of the Community, and direct to the
          Commission, quarterly returns showing the total net weight in metric tons covered by the
          export authorizations issued against the ceilings for exports to the Member States of the
          Community for each category specified in the Agreement. The categories falling within Group I
          will be taken as a whole.
          I shall be obliged if you will confirm that your Government is in agreement with the contents
          of this letter.
          Please accept, Madam, the assurance of my highest consideration.
                                                                        On behalf of the Council of
                                                                        the European Communities
          Her Excellency
          Madam
          Head of the Delegation
          of the Socialist Federal
          Republic of Yugoslavia
 ---pagebreak--- No L 182/ 10                          Official Journal of the European Communities                                 5 . 7. 73
                                                          Letter No 1
                                                                                  Brussels,
             Sir,
             I have the honour to acknowledge receipt of your letter dated this day, reading as follows:
                  'At the conclusion of the negotiations between the Yugoslav Government and the
                   Community which led this day to the signature of the Agreement on trade in cotton textiles,
                  the two Parties agreed on the following:
                  Imports of cotton textiles from Yugoslavia will be administered on the basis of a system
                  of dual supervision.
                  The authorities of the Member States of the Community will, automatically and without
                   delay, authorize imports of cotton textile products on submission of the importer's application
                  accompanied by the original of the export authorization. These export authorizations will
                   be issued by the Yugoslav authorities up to the total amount of the agreed ceilings.
                  The export authorization issued by the Yugoslav authorities shall apply to the products
                  referred to in Article 1 of the Agreement.
                  The export authorization must contain the following information :
                  1 . Destination,
                  2. Serial number,
                  3. Importer's name and address,
                  4. Exporter's name and address,
                  5 . Net weight (in kilogrammes or metric tons) and value,
                  6. Category and classification of product,
                  7. Certificate issued by the Yugoslav authorities showing that the quantity has been debited
                      against the agreed ceiling for exports to the Community.
                  The authorities of the* Member States of the Community will not raise difficulties in the
                  event of a discrepancy between the weight indicated in the export authorization and the
                  shipment or import weight, provided that it is within reasonable limits, while the Yugoslav
                  authorities will for their part endeavour to keep any discrepancies to a minimum.
                  In the event of total or partial withdrawal of an export authorization, the Yugoslav
                  authorities will notify the authorities of the Member States of the Community thereof. The
                  authorities of the Member States of the Community will take appropriate measures under
                  the administrative provisions in force.
                  The Yugoslav authorities will forward to the authorities of the Member States of the
                   Community, via the Embassies of the Member States of the Community, and direct to the
                  Commission, quarterly returns showing the total net weight in metric tons covered by the
                  export authorizations issued against the ceilings for exports to the Member States of the
                  Community for each category specified in the Agreement. The categories falling within
                  Group I will be taken as a whole.
                  I shall be obliged if you will confirm that your Government is in agreement with the
                  contents of this letter.'
             I have the honour to confirm that the Yugoslav Government is in agreement with the foregoing.
             Please accept, Sir, the assurance of my highest consideration.
                                                                               Head of the Delegation
                                                                                of the Socialist Federal
                                                                               Republic of Yugoslavia
 ---pagebreak--- 5 . 7. 73                        Official Journal of the European Communities                               No L 182/ 11
                                                     Letter No 2
                                                                           Brussels,
          Madam ,
          At the conclusion of the negotiations between the Yugoslav Government and the Community
          which led this day to the signature of the Agreement on trade in cotton textiles, the two Parties
          agreed on the following:
          All Yugoslav exports to the Community referred to in Article 2 of the Agreement shall be
          counted against the agreed ceilings.
          If additional supplies are required for re-exportation to third countries after processing in the
          Community, the authorities of the Member States of the Community may issue special import
          authorizations for which the corresponding export licences will be issued without the amount
          being counted against the agreed ceilings.
          The Commission will inform the Yugoslav Government each quarter of any such development.
          I shall be obliged if you will confirm that your Government is in agreement with the contents
          of this letter.
          Please accept, Madam, the assurance of my highest consideration.
                                                                            On behalf of the Council of
                                                                            the European Communities
          Her Excellency
          Madam
          Head of the Delegation
          of the Socialist Federal
          Republic of Yugoslavia
 ---pagebreak--- No L 182/ 12                          Official Journal of the European Communities                              5 . 7. 73
                                                          Letter No 2
                                                                                Brussels,
             Sir,
             I have the honour to acknowledge receipt of your letter dated this day, reading as follows:
                  'At the conclusion of the negotiations between the Yugoslav Government and the Community
                  which led this day to the signature of the Agreement on trade in cotton textiles, the two
                  Parties agreed on the following:
                  All Yugoslav exports to the Community referred to in Article 2 of the Agreement shall be
                  counted against the agreed ceilings.
                  If additional supplies are required for re-exportation to third countries after processing in
                  the Community, the authorities of the Member States may issue special import authorizations
                  for which the corresponding export licences will be issued without the amount being
                  counted against the agreed ceilings.
                  The Commission will inform the Yugoslav Government each quarter of any such
                  development.
                  I shall be obliged if you will confirm that your Government is in agreement with the
                  contents of this letter.'
             I have the honour to confirm that the Yugoslav Government is in agreement with the foregoing.
             Please accept, Sir, the assurance of my highest consideration.
                                                                                   Head of the Delegation
                                                                                   of the Socialist Federal
                                                                                   Republic of Yugoslavia
 ---pagebreak--- 5 . 7. 73                           Official Journal of the European Communities                             No L 182/ 13
                                                        Letter No 3
                                                                            Brussels,
           Madam,
           At the conclusion of the negotiations between the Yugoslav Government and the Community
           which led this day to the signature of the Agreement on trade in cotton textiles, the two Parties
           agreed on the following:
          The Agreement shall in no way impede merchants in the Member States of the Community
          from freely engaging, as they have done in the past, in trade with third countries.
           This principle shall apply not only to business carried out under transit arrangements but also
          to transactions involving goods which do not enter the customs territory of the Community.
          I shall be obliged if you will confirm that your Government is in agreement with the contents
          of this letter.
          Please accept, Madam, the assurance of my highest consideration.
                                                                             On behalf of the Council of
                                                                             the European Communities
          Her Excellency
          Madam
          Head of the Delegation
          of the Socialist Federal
          Republic of Yugoslavia
                                                        Letter No 3
                                                                            Brussels,
          Sir,
          I have the honour to acknowledge receipt of your letter dated this day, reading as follows :
               'At the conclusion of the negotiations between the Yugoslav Government and the
               Community which led this day to the signature of the Agreement on trade in cotton
               textiles, the two Parties agreed on the following:
               The Agreement shall in no way impede merchants in the Member States of the Community
               from freely engaging, as they have done in the past, in trade with third countries.
               This principle shall apply not only to business carried out under transit arrangements but
               also to transactions involving goods which do not enter the customs territory of the
               Community.
               I shall be obliged if you will confirm that your Government is in agreement with the
               contents of this letter.'
          I have the honour to confirm that the Yugoslav Government is in agreement with the foregoing.
          Please accept, Sir, the assurance of my highest consideration.
                                                                               Head of the Delegation
                                                                               of the Socialist Federal
                                                                               Republic of Yugoslavia
 ---pagebreak--- No L 182/ 14                           Official Journal of the European Communities                            5 . 7. 73
                                                           Letter No 4
                                                                                  Brussels,
            Madam,
             At the conclusion of the negotiations between the Yugoslav Government and the Community
             which led this day to the signature of the Agreement on trade in cotton textiles, the two
             Parties agreed on the following:
             1 . No provision of the Agreement is to be interpreted as affecting the present state of
                  liberalization of cotton textile products in the relations between the Member States of the
                 Community and Yugoslavia.
             2. It is understood that the Community will not ask for the fixing of a specific ceiling pursuant
                  to Article 3 of the Agreement unless the rapid and substantial growth in imports of the
                  products referred to is causing or is threatening to cause a disturbance of the market.
             Pending the results of the consultations provided for in that Article, the Yugoslav Government
             will, from the date of the request, maintain its exports of the products in question at a level
             corresponding, prorata temporis, to 105 °/o of the exports for the most recent period of twelve
             months for which statistics are available.
             I shall be obliged if you will confirm that your Government is in agreement with the contents
             of this letter.
             Please accept, Madam, the assurance of my highest consideration.
                                                                                   On behalf of the Council of
                                                                                   the European Communities
             Her Excellency
             Madam
             Head of the Delegation
             of the Socialist Federal
             Republic of Yugoslavia
                                                            Letter No 4
                                                                                  Brussels,
             Sir,
             I have the honour to acknowledge receipt of your letter dated this day, reading as follows:
                   'At the conclusion of the negotiations between the Yugoslav Government and the
                   Community which led this day to the signature of the Agreement on trade in cotton
                  textiles, the two Parties agreed on the following:
                   1 . No provision of the Agreement is to be interpreted as affecting the present state of
                       liberalization of cotton textile products in the relations between the Member States of
                       the Community and Yugoslavia.
                   2. It is understood that the Community will not ask for the fixing of a specific ceiling
                       pursuant to Article 3 of the Agreement unless the rapid and substantial growth in
 ---pagebreak--- 5 . 7. 73                         Official Journal of the European Communities                               No L 182/ 15
                 imports of the products referred to is causing or is threatening to cause a disturbance
                 of the market.
              Pending the results of the consultations provided for in that Article, the Yugoslav Government
             will, from the date of the request, maintain its exports of the products in question at a
             level corresponding, prorata temporis, to 105 °/o of the exports for the most recent period
             of twelve months for which statistics are available.
              I shall be obliged if you will confirm that your Government is in agreement with the
             contents of this letter.'
          I have the honour to confirm that the Yugoslav Government is in agreement with the foregoing.
          Please accept, Sir, the assurance of my highest consideration.
                                                                                 Head of the Delegation
                                                                                  of the Socialist Federal
                                                                                   Republic of Yugoslavia
 ---pagebreak--- No L 182/ 16                        Official Journal of the European Communities                                    5. 7. 73
                                                          Letter No 5
                                                                                                Brussels, . . . . .
             Madam,
             At the conclusion of the negotiations between the Yugoslav Government and the Community
             which led this day to the signing of the Agreement on trade in cotton textiles, the two Parties
             agreed on the following:
             Article 8 of the Agreement shall apply to the products set out in the list annexed hereto.
             I shall be obliged if you will confirm that your Government is in agreement with the contents
             of this letter.
            Please accept, Madam, the assurance of my highest consideration.
                                                                              On behalf of the Council of
                                                                                 the European Communities
             Her Excellency
             Madam
             Head of the Delegation
             of the Socialist Federal
             Republic of Yugoslavia
                                                     Annex to letter No 5
                     CCT
                   heading                                              Description
                      No
                 54.05             Woven fabrics of flax or of ramie
                 56.05             Yarn of man-made fibres (discontinuous or waste) not put up for retail
                                   sale :
                         B         Of regenerated textile fibres
                 56.07             Woven fabrics of man-made fibres
                                   (discontinuous or waste):
                         B         Of regenerated textile fibres
             ex 58.04              Woven pile fabrics and chenille fabrics (other than terry towelling or
                                   similar terry fabrics of cotton falling within heading No 55.08 and fabrics
                                   falling within heading No 58.05)
                 58.10             Embroidery, in the piece, in strips or in motifs:
                         A         Embroidery without visible ground :
                    ex II             Other
                         B         Other:
                    ex II             Other
 ---pagebreak--- 5 . 7. 73                  Official Journal of the European Communities                                No L 182/ 17
                CCT
               heading                                        Description
                 No
             60.01        Knitted or crocheted fabric, not elastic nor rubberized :
                    B     Of man-made fibres
                ex C         Of other textile materials
             60.06        Knitted or crocheted fabric and articles thereof, elastic or rubberized (in­
                          cluding elastic knee-caps and elastic stockings):
                ex A         Fabric
             ex 61.01     Men's and boys' outer garments
             61.02        Women's, girls' and infants' outer garments:
                ex B         Other
          ;x 61.03        Men's and boys' undergarments, including collars, shirt fronts and cuffs
             61.05        Handkerchiefs :
                ex B         Other
             62.02        Bed linen, table linen, toilet linen and kitchen linen ; curtains and other
                          furnishing articles:
                ex B         Other
             62.03        Sacks and bags, of a kind used for the packing of goods :
                     B    Of other textile materials :
                       I  Used :
                   ex (b)    Other
                ex II        Other
             62.04        Tarpaulins, sails, awnings, sunblinds, tents and camping goods:
                     B    Of other textile materials
             63.01        Clothing, clothing accessories, travelling rugs and blankets, household
                          linen and furnishing articles (other than Articles falling within heading
                          No 58.01, 58.02 or 58.03), of textile materials, footwear and headgear of
                          any material, showing signs of appreciable wear and imported in bulk or
                          in bales, sacks or similar bulk packings:
                ex A         Used clothing
 ---pagebreak--- No L 182/ 18                          Official Journal of the European Communities                                       5. 7. 73
                                                            Letter No S
                                                                                                               Brussels,
             Sir,
             I have the honour to acknowledge receipt of your letter dated this day, reading as follows:
                   'At the conclusion of the negotiations between the Yugoslav Government and the
                   Community which led this day to the signing of the Agreement on trade in cotton
                  textiles, the two Parties agreed on the following:
                  Article 8 of the Agreement shall apply to the products set out in the list annexed hereto.
                  I shall be obliged if you will confirm that your Government is in agreement with the
                  contents of this letter.'
             I have the honour to confirm that the Yugoslav Government is in agreement with the foregoing.
            Please accept, Sir, the assurance of my highest consideration.
                                                                                      Head of the Delegation
                                                                                      of the Socialist Federal
                                                                                     Republic of Yugoslavia
                                                        Annex to letter No 5
                       CCT
                     heading                                              Description
                        No
                  54.05              Woven fabrics of flax or of ramie
                  56.05              Yarn of man-made fibres (discontinuous or waste) not put up for retail
                                     sale :
                           B         Of regenerated textile fibres
                  56.07              Woven fabrics of man-made fibres
                                     (discontinuous or waste):
                           B         Of regenerated textile fibres
            ex 58.04                Woven pile fabrics and chenille fabrics (other than terry towelling or
                                     similar terry fabrics of cotton falling within heading No 55.08 and fabrics
                                     falling within heading No 58.05)
                  58.10             Embroidery, in the piece, in strips or in motifs:
                          A         Embroidery without visible ground:
                      ex II             Other
                           B         Other :
                      ex II             Other
 ---pagebreak--- 5 . 7. 73                    Official Journal of the European Communities                               No L 182/ 19
                CCT
               heading                                          Description
                  No
             60.01          Knitted or crocheted fabric, not elastic nor rubberized :
                     B      Of man-made fibres
                ex C           Of other textile materials
             60.06          Knitted or crocheted fabric and articles thereof, elastic or rubberized
                            (including elastic knee-caps and elastic stockings):
                ex A           Fabric
          ex 61.01          Men's and boys' outer garments
             61.02          Women's, girls' and infants' outer garments :
                ex B           Other
          ex 61.03          Men's and boys' undergarments, including collars, shirt fronts and cuffs
             61.05          Handkerchiefs :
                ex B           Other
             62.02          Bed linen, table linen, toilet linen and kitchen linen ; curtains and other
                            furnishing articles :
                ex B           Other
             62.03          Sacks and bags, of a kind used for the packing of goods:
                     B      Of other textile materials :
                        I   Used :
                     ex (b)    Other
                ex II          Other
             62.04           Tarpaulins, sails, awnings, sunblinds, tents and camping goods:
                     B      Of other textile materials
             63.01          Clothing, clothing accessories, travelling rugs and blankets, household
                            linen and furnishing articles (other than articles falling within heading
                            No 58.01 , 58.02 or 58.03 ), of textile materials, footwear and headgear of
                            any material, showing signs of appreciable wear and imported in bulk or
                            in bales, sacks or similar bulk packings:
                 ex A          Used clothing
 ---pagebreak--- No L 182/20                         Official Journal of the European Communities                              5 . 7. 73
                                                        Letter No 6
                                                                              Brussels,
            Madam,
            At the conclusion of the negotiations between the Yugoslav Government and the Community
            which led this day to the signature of the Agreement on trade in cotton textiles, the two Parties
           agreed on the following:
           As far as the Kingdom of the Netherlands is concerned, the Agreement shall apply solely to
           the Kingdom's territory in Europe.
           I shall be obliged if you will confirm that your Government is in agreement with the contents
           of this letter.
           Please accept, Madam, the assurance of my highest consideration.
                                                                           On behalf of the Council of
                                                                           the European Communities
           Her Excellency
            Madam
           Head of the Delegation
           of the Socialist Federal
           Republic of Yugoslavia
                                                        Letter No 6
                                                                              Brussels,
           Sir,
           I have the honour to acknowledge receipt of your letter dated this day, reading as follows:
                'At the conclusion of the negotiations between the Yugoslav Government and the Community
                which led this day to the signature of the Agreement on trade in cotton textiles, the two
                Parties agreed on the following:
                As far as the Kingdom of the Netherlands is concerned, the Agreement shall apply solely
                to the Kingdom's territory in Europe.
                I shall be obliged if you will confirm that your Government is in agreement with the
                Contents of this letter.'
           I have the honour to confirm that the Yugoslav Government is in agreement with the foregoing.
            Please accept, Sir, the assurance of my highest consideration.
                                                                             Head of the Delegation
                                                                             of the Socialist Federal
                                                                             Republic of Yugoslavia
 ---pagebreak--- 5 . 7. 73                           Official Journal of the European Communities                              No L 182/21
                                                         Letter No 7
                                                                                 Brussels,
          Sir,
          At the conclusion of the negotiations between the Community and the Yugoslav Government
           which led this day to the signature of the Agreement on trade in cotton textiles, the two Parties
          agreed on the following:
          In view of the safeguard clauses provided for in the Agreement, the two Parties state their
          intention of avoiding any measures which may have the effect of rendering the Agreement
          inoperative.
          If either of the Parties finds that its interests are seriously prejudiced by such measures adopted
          by the other, that Party may request the opening of consultations in order to find mutually
          acceptable solutions.
          I shall be obliged if you will confirm that the Community is in agreement with the contents
          of this letter.
          Please accept, Sir, the assurance of my highest consideration.
                                                                                Head of the Delegation
                                                                                of the Socialist Federal
                                                                                Republic of Yugoslavia
                                                         Letter No 7
                                                                                 Brussels, .
          Madam,
          I have the honour to acknowledge receipt of your letter dated this day, reading as follows:
               'At the conclusion of the negotiations between the community and the Yugoslav
               Government which led this day to the signature of the Agreement on trade in cotton textiles,
               the two Parties agreed on the following:
               In view of the safeguard clauses provided for in the Agreement, the two Parties state
               their intention of avoiding any measures which may have the effect of rendering the
               Agreement inoperative.
               If either of the Parties finds that its interests are seriously prejudiced by such measures
               adopted by the other, that Party may request the opening of consultations in order to find
               mutually acceptable solutions.
               I shall be obliged if you will confirm that the Community is in agreement with the
               contents of this letter.'
          I have the honour to confirm that the Community is in agreement with the foregoing.
          Please accept, Madam, the assurance of my highest consideration.
                                                                             On behalf of the Council of
                                                                              the European Communities
          Her Excellency
          Madam
          Head of the Delegation
          of the Socialist Federal
          Republic of Yugoslavia
 ---pagebreak--- No L 182/22                        Official Journal of the European Communities                           5 . 7. 73
                                                          Letter No 8
                                                                               Brussels,
           Sir,
            At the conclusion of the negotiations betweeen the Community and the Yugoslav Government
            which led this day to the signature of the Agreement on trade in cotton textiles, I have the
            honour of drawing your attention to the development of trade in textiles between the
           Community and Yugoslavia.
           In the light of the economic development of Yugoslavia and its efforts to open up its internal
           market, the trade in textile products between the Community and Yugoslavia shows an
           increasingly dynamic and diversified development. In the field of textiles the Community
           takes 34 °/o of Yugoslavia's world-wide exports and provides 40 °/o of its imports.
           Industrial cooperation in the field of textiles represents an important factor in structural
           changes in trade and the corresponding development of the industries concerned.
            The statistical table annexed hereto shows the position with respect to these patterns of
           trade and to industrial cooperation in the field of textiles.
            The Yugoslav Government expresses the hope that the Agreement on trade in cotton textiles
            will contribute to the future development of trade between the Community and Yugoslavia in
           general, and in the field of textiles in particular.
           I shall be obliged if you will acknowledge receipt of this letter and the Annex thereto.
           Please accept, Sir, the assurance of my highest consideration.
                                                                               Head of the Delegation
                                                                               of the Socialist Federal
                                                                               Republic of Yugoslavia
 ---pagebreak--- 5 . 7. 73                                Official Journal of the European Communities                            No L 182/23
                                                           Annex to letter No 8
                                The Structure of Imports and Exports of Textile Products in Yugoslavia
                                                              — 1971 —
                                                                                                             1in million Dollars)
                                                                 Total       EEC      United              EEC
                            SITC Groups                          SFRY         '6'    Kingdom    Denmark    '9'           °/o
IMPORTS
Group       26 Textile fibres and waste                        118.2        17·7        2·2              19·9           16·8
            65 Yarn, woven fabrics, made-up textile
                articles                                       139.1        80·0        2·4              82·4           59·2
           841 Clothing                                         17·5         7·2        0·1               7·3           41·7
                                                   Total :     274.8       104.9       4·7              109.6
                                                               100.0 °/o    38·2 %                       39·9 %
EXPORTS
Group       26 Textile fibres and waste                          9·5         2·1                          2·1           22·1
            65 Yarn, woven fabrics, made-up textile
                articles                                        79·0        30·4        0·8       1·2    32·4           41·0
           841 Clothing                                         93·6        24·9       2·0        0·4    27·3           29·1
                                                   Total :     182.1        57·4        2·8       1·6    61·8
                                                               100-0 %      31·5 «/o                     33.9%
Source : OECD
Processing traffic
IMPORTS                                                         73·2        55·5                         55·5           75·8
EXPORTS                                                         89·4        76·9                         76·9           86·0
Source: Yugoslav statistics
Overall total:
IMPORTS                                                        348.0       160.4       4·7              165.1           47·4
EXPORTS                                                        271.5       134.3       2·8        1·6   138.7           52·0
 ---pagebreak--- No L 182/24                          Ofacial Journal of the European Communities                              5 . 7. 73
                                                        Letter No 8
                                                                                 Brussels,
           Madam,
           I have the honour to acknowledge receipt of your letter dated this day, reading as follows:
                'At the conclusion of the negotiations between the Community and the Yugoslav
                Government which led this day to the signature of the Agreement on trade in cotton
                textiles, I have the honour of drawing your attention to the development of trade in textiles
               between the Community and Yugoslavia.
               In the light of the economic development of Yugoslavia and its efforts to open up its
               internal market, the trade in textile products between the Community and Yugoslavia
                shows an increasingly dynamic and diversified development. In the field of textiles the
                Community takes 34% of Yugoslavia's world-wide exports and provides 40°/o of its
               imports.
                Industrial cooperation in the field of textiles represents an important factor in structural
               changes in trade and the corresponding development of the industries concerned.
                The statistical table annexed hereto shows the position with respect to these patterns of
                trade and to industrial cooperation in the field of textiles.
                The Yugoslav Government expresses the hope that the Agreement on trade in cotton
                textiles will contribute to the future development of trade between the Community and
                Yugoslavia in general, and in the field of textiles in particular.
                I shall be obliged if you will acknowledge receipt of this letter and the Annex thereto.'
            Please accept, Madam, the assurance of my highest consideration.
                                                                               On behalf of the Council of
                                                                               the European Communities
            Her Excellency
            Madam
            Head of the Delegation
            of the Socialist Federal
            Republic of Yugoslavia
 ---pagebreak---  5 . 7. 73                                Official Journal of the European Communities                            No L 182/25
                                                            Annex to letter No 8
                                 The Structure of Imports and Exports of Textile Products in Yugoslavia
                                                               — 1971 —
                                                                                                              (in million Dollars)
                                                                  Total       EEC        United            EEC
                             SITC Groups                          SFRY         •6'      Kingdom  Denmark    •9'            •/.
IMPORTS
Group       26 Textile fibres and waste                         118.2        17·7          2·2            19·9           16·8
            65 Yarn, woven fabrics, made-up textile
                 articles                                       139.1        80·0         2·4             82·4           59·2
           841 Clothing                                          17·5         7·2         0·1              7·3           41·7
                                                    Total :     274.8       104.9         4·7            109.6
                                                                100-0 %      38·2 °/o                     39·9 °/o
EXPORTS
Group       26 Textile fibres and waste                           9·5         2·1                          2·1           22·1
            65 Yarn, woven fabrics, made-up textile
                 articles                                        79·0        30·4         0·8      1·2    32·4           41·0
           841 Clothing                                          93·6        24·9         2·0      0·4    27·3           291
                                                    Total :     182.1        57·4     ,   2·8      1·6    61·8
                                                                100-0 %      31·5 %                       33.9%
Source : OECD
Processing traffic
IMPORTS                                                          73·2        55·5                         55·5           75·8
EXPORTS                                                          89·4        76·9                         76·9           86·0
Source : Yugoslav statistics
Overall total:
IMPORTS                                                         348.0       160.4         4·7            165.1           47·4
EXPORTS                                                         271.5       134.3         2·8      1·6   138.7           52·0