CELEX: 51988PC0606
Language: en
Date: 1988-10-31
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. (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 606
Vol. 1988/0204
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM ( 88 ) 606   final
                                                   Brussels , 31 October 1988
                    PROPOSAI. 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 )
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Explanatory Memorandum
1.   The attached draft proposal for a Council Decision concerns the
     adjustment of quotas of categories 7 and 78 as agreed with Hong Kong
     during negotiations for the bilateral textile Agreement , following
     the introduction of the Harmonized System .
2.   The document proposes that the above-mentioned amendment to the
     bilateral Agreement with Hong Kong on trade in textile products
     be applied provisionally from 1 January 1988 .
3.   The amendment is set out in the Agreed Minute initialled on
     2S July 1988   at the end of consultations with Hong Kong on this
     matter .
     It consists of an increase in the quota for category 7_ by an amount
     negotiated on the basis of trade levels recorded in 1987 for the products
     now covered by that category as a result of the introduction of the
     Harmonized System^ and to reduce the quota of category 78 of an
      equivalent quantity .
A.   The Council is invited to settle the matter at its next meeting .
 ---pagebreak--- Draft 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 .
Consultations took place on 27 July 1988 . between the Community and Hong Kong
at the latter 's request during which it was agreed to adjust a quota which
had been agreed when the above-mentioned Agreement was renegotiated .
In this document the Commission explains the reasons for this modification
and invites the Council to adopt a Decision provisionally applying the
amendment to the bilateral trade Agreement concluded with Hong Kong .
1.   When the multifibre bilateral Agreements were renegotiated in 1986
     some quotas were adjusted in order to allow the Community to make
     classification changes with a view to the introduction of the
     Harmonized System .   However , some additional adjustments are now
     necessary following the introduction of the Combined Nomenclature
     on 1 January 1988 .
2.   Since 1 January 1988 the quota for category 7 . has covered certain
     products from category     78 .                                     In
     order to ensure a neutral transposition of the CCT and Nimexe to the
      Combined Nomenclature , categories 7 and 78 need to be adjusted .
3.    At Hong Kong 's request , consultations were held in Brussels on
     27 July    in order to settle the matter .
 ---pagebreak---                               - 2 -
                                                                        )
With the assistance of the Member States the Commission reached
an agreement with Hong Kong to increase the quota for category 7
and to reduce the quota of the category' 78 of equivalent quantities
negotiated on the basis of trade levels in 1987 .
An Agreed Minute containing the above-mentioned modifications to
the bilateral Agreement was initialled on 28 July 1988 . ( see Annex ).
Consequently , the Commission proposes that the Council should approve
the provisional application of the Agreed Minute initialled on
28 July 1988 modifying the bilateral Agreement on trade in textile
products initialled by the Community and Hong Kong on 2 October 1986 ,
pending the formal conclusion of the Agreement and the Minute .
 ---pagebreak---                                                       COUNCIL DECISION
             concerning the provisional application of the Agreed Minute modifying the Agreement better 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                              Article 1
  Economic Community, and in particular Article 113
  thereof ,                                                     Finding the completion of the procedures
                                                                necessary for its conclusion, the Agreed Minute
  Having regard to the proposal from the Commission,            modifying the Agreement on trade in textile
                                                                products between the European Economic Community
  Whereas pending the completion of the procedures              and Hong Kong shall be applied provisionally in
  necessary for its conclusion, the Agreement between           the Community, with effect from 1 January 1988,
  the European Economic Community and Hong Kong on              provided that there is reciprocal provisional
  trade in textile products , initialled on 2 October           application on the part of Hong Kong .
  1986, has been provisionally applied since 1 January
  1987 in accordance, for the Community 's part , with          The text of the Agreed Minute is attached to this
  the Cocncil Decision of 11 December 1986 ;                    Decision .
  Whereas that Agreement provides for the possibility of                                Article 2
  quantitative adjustments to the quotas for certain
  categories , in order to allow                                The Commission is invited to seek the agreement of
                     the introduction of the Combined           the Government of Hong Kong on the provisional
  Nomenclature ;                                                application of the Agreed Minute referred to
                                                                 in Article 1 and to notify the Council thereof .
  Whereas following consultations between the Community
  and Hong Kong an Agreed Minute modifying the quotas of         Done at Brussels ,
ategtnies 7 and TFfcroducts provided for in the Agreement
  was initialled on   28 July 1938.                                                             For the Counci l
  Whereas pending the completion of the procecbres                                              The President
  necessary for the conclusion of the Agreement and
  the Agreed Minute , the Agreed Minute should be
  applied provisionally , with effect from 1 January
  1988, provided that there is a reciprocal
  provisional application on the part of Hong Kong,
 ---pagebreak---             A delegation of the Hong Kong Government and a delegation of the
European Community met in Brussels on 27 July 1988 for consultations on
problems arising from        the adoption , following introduction of the Harmonised
System , of the revised       definitions of blouses , both knitted and woven , as set
out in the explanatory       notes to the Combined Nomenclature ( CN ) Chapters 61 and
62 concerning shirts ,       shirt-blouses and blouses for women or girls ( Category
7 ).   The consultations were conducted in accordance with Article 14 ( 3 ) of the
flQri’omrnf  nn T rnrio   in TP*H1P Prnrli irf ^ hoiwrnn I long Knng    .'»m ! I fir- rnmumni fy
init ial l^d nn V firhiher 1986 in Brussels .
2.          As a result of the consultations and having regard to the migration
of woven tops with shoulder straps and woven tops without opening from
Category 78 to Category 7 , the two parties agreed to add the following
quantities to the quantitative limits for Category 7 established in Annex II
of the said Agreement :
                                                     Additional Quantity
                       Vear                             '000 pieces
                       1988                                 632
                       1989                                 637
                       1990                                 642
                       1991                                 647
 and to deduct the following quantities from the quantitative limits for
 Category 78 established in Annex II of the said Agreement :
                                                     Quantity to be deducted
                       Year                                     Tonnes
                        1988                                      52
                        1989                                      52
                        1990                                      53
                        1991                                      53
                                                                   / IE
 ---pagebreak---                                                                   -2-
3.         It was further agreed that the regional shares for Category 7 for the
year 1988 as indicated in the Annex to the Community 's Note Verbale No . 02728
dated A March 1988 will be increased in consequence of the additional quantity
fur Category 7 referred tu in paragraph 2 above by the following quantities :
                                                                          Additional Quantity
                               Region                                         '000 pieces
                                    D                                             417
                                    F                                                61
                                     I                                                  1
                                  BNL                                                19
                                    UK                                            133
                                  DEN                                                   1
4.         As regards the regional shares for Category 78 for the year 1988 as
indirater) in the Annex to the Community 's Note Verhalp No . 07728 dated 4 March
1988 , it war, agreed that they will he decreased in i/ uir.equuiieo of the
quant it in -; In he dedu< led f i fHti I allegory                    /M referred In in | i.n .n |i ipl i ’• . ilmve hy
the foilowing quanti ties
                                                                           Quantity to be deducted
                                Region                                                         Tonnes
                                     D                                                                  34
                                     F                                                                     5
                                  BNL                                                                      2
                                     UK                                                                 11
                                                                                                     Brussels , 28 July 1988
                                                                                                          J
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