CELEX: 51995PC0109
Language: en
Date: 1995-03-29
Title: Proposal for a COUNCIL DECISION ON THE CONCLUSION OF THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA ON THE MODIFICATION OF CERTAIN PROVISIONS OF THE MFA BILATERAL AGREEMENT ON TRADE IN TEXTILE PRODUCTS BETWEEN THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           Brussels, 29.03.1995
                                           COM(95) 109 final
                                           95/0077 (ACC)
                            Proposal for a
                       COUNCIL DECISION
        ON THE CONCLUSION OF THE AGREEMENT BETWEEN
 THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA
ON THE MODIFICATION OF CERTAIN PROVISIONS OF THE MFA BILATERAL
      AGREEMENT ON TRADE IN TEXTILE PRODUCTS BETWEEN
 THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA
                   (presented by the Commission)
 ---pagebreak---                                      EXPLANATORY MEMORANDUM
           1. The Commission has negotiated a bilateral Agreement on the modification of certain
              provisions of the MFA bilateral Agreement on trade in textile products between the
  ^           People's Republic of China and the European Community with the People's Republic of
              China.
»   •• . .
           2. The Commission has initialled this Agreement on 14 December 1994.
           3.  The Council is therefore asked to approve on behalf of the Community the attached
               Decision on the conclusion of the Agreement between the European Community and the
               People's Republic of China on the modification of certain provisions of the MFA bilateral
               Agreement on trade in textile products between the People's Republic of China and the
               European Community.
                                                                   CD
 ---pagebreak---                         PROPOSAL FOR A COUNCIL DECISION
              ON THE CONCLUSION OF THE AGREEMENT BETWEEN
     THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA
  ON THE MODIFICATION OF CERTAIN PROVISIONS OF THE MFA BILATERAL
            AGREEMENT ON TRADE IN TEXTILE PRODUCTS BETWEEN
     THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community and in particular Article
113 in conjunction with Article 228, paragraph 2,firstsentence, thereof,
Having regard to the proposalfromthe Commission,
Whereas the Commission has negotiated on behalf of the Community an Agreement with the
People's Republic of China on the modification of certain provisions of the MFA bilateral
Agreement on trade in textile products between the People's Republic of China and the
European Community.
Wteeas this bilateral Agreement should be approved,
                                                           i
 ---pagebreak--- HAS DECIDED AS FOLLOWS:
                                         ARTICLE 1
The bilateral Agreement between the European Community and the People's Republic of
China on the modification of certain provisions of the MFA bilateral Agreement on trade in
textile products between the People's Republic of China and the European Community shall be
approved on behalf of the European Community.
The text of this Agreement is attached to this Decision.
                                         ARTICLE 2
The President of the Council is hereby authorized to designate the person empowered to sign
the Agreement referred to in Article 1 in order to bind the European Community.
Done at Brussels,                                 For the Council
                                                  The President
 ---pagebreak---                                                Agreement
                            on the modification of certain provisions of the
                         MFA bilateral agreement on trade in textile products
             between the People's Republic of China and the European Community
Following discussions in December 1992 on the adaptation of growth andflexibilityrates laid down
in the 1988 MFA bilateral agreement between China and the European Community, and the
discussions in 1994 concerning the modifications of economic provisions of the agreement, as
envisaged in the Exchange of Letters between Sir Leon Brittan and Minister Wu Yi in view of
China's accession to GATT/WTO, the two Parties have agreed that:
a) the growth and flexibility rates set out in the bilateral agreement between China and the
     European Community are modified, as of 1 January 1993, as indicated in the annex to this
     Agreement. This commitment reflects a compromise that takes into account the following
     elements:
     1) the fact that China has become the largest supplier of the EC in textiles and clothing;
     2) the perspective of China's accession to GATT/WTO;
b) these modified rates will be the basis of all notifications to GATT/WTO, as being those in force
     during the 12 month period prior to the entry into force of the ATC (Uruguay Round
     Agreement on Textiles and Clothing);
c) the actual application of the modified rates shall remain suspended until the date of China's
     accession to GATT/WTO;
d) should China's accession to GATT/WTO not be completed during the first 9 months of 1995,
     consultations will be held between the two Parties to discuss the terms of a bilateral Agreement
     governing the trade in textile products for 1996 and subsequent years, to be based on the growth
     and flexibility rates not lower than those listed in the annex attached to this agreement;
e) this Agreement shall enter into force on the first day of the month following its signature. It shall
     apply provisionally as of the date of its initialling.
For the Government of the                                        For the Council of the
People's Republic of China                                       European Union
                                               CD
 ---pagebreak---                 ANNEX TO THE AGREEMENT ON THE MODIFICATION
    OF THE MFA BILATERAL AGREEMENT ON TRADE IN TEXTILE PRODUCTS
                     BETWEEN THE PEOPLE'S REPUBLIC OF CHINA
                           AND THE EUROPEAN COMMUNITY
    Growth rates for quantitative limits (%)
    Categories
    2                              0.2
    3                              20
    4                              13
    5                              1.5
    6                              175
    7                              1.5
    8                              1.5
    9                              2.5
    12                             3.0
    15                             3.0
    16                             2.0
     18                            3.0
     19                            3.0
    20/39                          2.75
    21                             2.5
    22                             3.5
    23                             3.0
    26                             15
    32                             3.0
    37.                            5.0
    73                             2.0
II. Flexibility rates (%)
    advance use                               1 to 5
b)  carry over                                3 to 7
c)  transfers
    - between categories
       2 and 3
    - from 1 to 2 and 3
    - between 4 to 8
    - from groups I, II and
      III to groups II and III
                                             C
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(95) 109 final
                                              DOCUMENTS
EN                                                                       11 02
                                     Catalogue number : CB-CO-95-122-EN-C
                                                             ISBN 92-77-87073-7
Offîce for Official Publications of the European Communities
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