CELEX: 51976PC0035
Language: en
Date: 1976-02-03 00:00:00
Title: Recommendation for a Council Decision authorising the Commission to open negotiations with Romania for the conclusion of an agreement on trade in textiles (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 35
Vol. 1976/0016
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 ---pagebreak---           COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        COM(76)35 final.
                                                        Brussels , 3 February 1976
                                      Recommendation for
                                      a Council Decision
                  authorising the Commission to open negotiations with
                  Romania for the conclusion of an agreement on trade
                                          in textiles
                       ( submitted to the Council "by the Commission)
                                                         I
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®(76 ) 35 final .
 ---pagebreak---                   Explanatory Memorandum
 1.      The Community is a party to the Arrangement Regarding International
 Trade in Textiles (M.F.A. ). Article 4 of this Arrangement leaves open
 the. possibility for participating countries to conclude bilateral agreements
between importing and exporting countries . The Community was of the
opinion that it was through the conclusion of such agreements with its
principal suppliers that the principal objective of the M.F.A. , i.e.
the orderly development of trade in textiles , could best be achieved .
         In accordance with this view , negotiations were initiated first
with those third countries with which the Community had already concluded
agreements on trade in cotton textiles .
2.       At its meeting on 12 March 1975 the Committee of Permanent
Representatives decided that negotiations should also be proposed by
the Community to the three state-trading countries which are parties
to the M. P.A. -Hungary, Poland and Romania (without prejudice to possible
negotiations for global trade agreements ). It also agreed "the text
of a letter to be addressed by the Commission to the three countries
indicating the willingness of the Community to open negotiations which ,
"while taking account of the differences in commercial structures , would
be based on the provisions of Article 4 of the M.F.A. " (see text of
letter in Annex A ).
         On 8 January 1976 the Romanian authorities replied that they
were prepared to open negotiations with the Community based on Article 4
of the M.F.A. and also taking account of Articles 2 and 6 ( see text
of letter in Annex B ).
       By contrast , Poland and Hungary have not replied to the Community * s
offer . The Commission considers , consequently, that the import rules
at present applied with regard to those oountries , in conformity with
the provisions of the GATT , including the protocols of accession , should
remain in effect .
 ---pagebreak---                             - 2 -
3.    . In view of the time–limit fixed in the M.F.A. for the conclusion
of bilateral agreements ( 31 March 1976 ) and. in view also of the
favourable response from Romania to the Community offer ,   the Commission
is of the opinion that negotiations with Romania should be opened as
quickly as possible .   In unofficial conversations between the Commission 's
services and the Romanian authorities and in -.. eatings of the Council 's
textile group on the preparation of possible negotiations with the
state-trading countries certain elements which could serve as a basis
for the negotiations have emerged .
        In the light of these elements and in view of the provisions
and obligations of the M.F.A. , the Commission considers that the
negotiations with Romania should be governed by the same criteria
as the other negotiations which have already taken place , with the
exception of those _ items which are necessary to take account of the
differences in commercial structures mentioned in the Commission 's
letter , cited above at point 2 .
        On the internal level , the provisions adopted for the preceding
negotiations , particularly burden-sharingj should apply.
4.      Consequently , the Commission recommends to the Council, by virtue
of Article 113 of the Treaty , that it adopt the attached Decision .
 ---pagebreak---             Recommendation for a Council Decision
   authorising the Commission to open negotiations with Romania
  for the conclusion of an agreement on trade in textiles
  THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establishing the European Economic Community ,
  and in particular Article 113 thereof j
  Having regard to' the recommendation from the Commission ,
  Whereas Article 4 of the Arrangement Regarding Int ernat ional Trade in
. Textiles permits the conclusion of bilateral agreements "between
   importing and exporting countries ;
  Whereas • the Community considers that the conclusion of such agreements
  with the third countries whiclj are its principal suppliers would best
  enable it to achieve the objectives of the said Arrangement Regarding
  International Trade . ±1 Textiles ;
  Whereas the Community therefore_        proposed to Romania , a party
  to the said Arrangement , the opening of negotiations for the conclusion
  of an agreement on trade in "textiles and whereas Romania has     replied
  favourably,
  HAS ADOPTED THIS DECISION :
                                  Article 1
       The Commission is hereby authorised to open negotiations with
  Romania with a view to the conclusion of an agreement on trade in
  textile products , in accordance with the provisions of the Arrangement
  Regarding International Trade in Textiles .
 ---pagebreak---                                   - 2 -
                                 Article 2
     The Commission shall conduct such negotiations in consultations
with the special Article 113 Committee and on the basis of the
directives in the Annex hereto .
Done at Brussels ,                          For the Council
                                             The President
                               o
 ---pagebreak---                  : >:        ·.                      /· - . .
  . • •/;      i    •           -  . .- »• v v . » i . .   -<
            ■'             V' ' :            ; '/ y
                                  Directives for ne,gotiations with Romania
  I.               Items identical .with those adopted, with regard to all the countries
                   with which- the Community has negotiated .
; .•> * a) Autolimitarfc ion agreement , valid until 31 December 1977 > with
                            an administration system which includes double-che eking.
                   b )•. Coverage of the agreement established selectively on the
                            basis of the criteria in Article 4 of the M.F.A. j   elimination
                            of real r.isks of market disruption and the fixing of ceilings
                            based on that concept .
          .        c ) Binding consultation clause and regional measures .
                   d)       Provisions for flexibility, carry-over and anticipation .
                                                              ν/
  II .                Additional items
                      a)     Inclusion of linen in the coverage of the agreement .
                      b ) Provisions relating to outward processing traffic :      of the kind
                             adopted for Yugoslavia.
  III .               Specific items fbwing from the differences in commercial structures .
                      a) A price clause allowing account to be taken of the particular
                             methods of price-formation in Romania and giving to the Community
                             the possibility of intervening in case products covered by the
                         .   agreement should be offered for sale at prices considerably below:
                             -    the price of the national product at the same level of trade
                        . : -     and the price generally prevailing for exports by other
                                  countries to the importing market .
                      b ) Market access for Community textile products :        an undertaking to
                             be given by Romania to diversify and increase its imports of
                         v - textile products from the Community.