CELEX: 51991PC0482
Language: en
Date: 1991-12-02
Title: Proposal for a COUNCIL REGULATION ( EEC ) prolonging the measures taken under the agreements between the European Economic Community and the United States of America for the conclusion of negotiations under GATT Article XXIV.6

S  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       C0M(91) 482 final
                                                       Brussels, 2 December 1991
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                                            Proposal for a
                                       pnMNPIl REGULAT I QN__1EECJ,
                 prolonging t h e measures taken under the agreements
               between t h e European Economic Community and the United
                S t a t e s of America for t h e conclusion of n e g o t i a t i o n s
                                  under GATT A r t i c l e XXIV.6
                                     (presented by the Commission)
 ---pagebreak---                                         —'d-
                                EXPLANATORY MEMORANDUM
Subject : The 1987 bilateral agreement between the European
                Economic Community and the United States of
                America
1.      In 1987 an "Agreement for the Conclusion of
        Negotiations between the European Economic Community
        and the United States of America under GATT Article
        XXIV.6" was entered into between the two parties by
        which they agreed upon a number of rights and
        obligations <1). Consultations between the two parties
        as foreseen in the Agreement subsequently took place in
        an attempt to find a solution to the disagreement
        existing between the Community and the United States,
        on whether or not new actions, if any, might be
        appropriate.
2.      It was not possible to conclude these consultations by
        the end of 1990, notably in view of the prolongation of
        the Uruguay Round, and therefore in respect of those
        rights and obligations which were foreseen to expire on
        that date an agreement was reached between the
        Community and the United States to extend these until
        31 December 1991. The Community implemented this
        prolongation by a Decision by the Council to approve an
        Exchange of Letters between the Community and United
        States complementing the Agreement (2).
3.      As the negotiations under the Uruguay Round will
        continue into 1992, a resolution of this issue is still
        not possible. The fact that the present Decision is
        limited in time means that certain measures cannot be
        applied after the end of 1991, without a legal basis in
        the form of a Council instrument.
4.      The Commission's proposal for a Council Regulation
        reflects its view that on the one hand it is desirable
        to continue to apply these measures, in particular to
        avoid a worsening of the disagreement on this issue,
        and on the other hand that it is preferable to do so on
        an autonomous basis.
5.      Given that the measures are being retained
        autonomously, the appropriate legal instrument is a
        Council Regulation.
(1) 0J No L 98, 10.A.1987, p. 1
(2) 0J No L 17, 23.1.1991, p.17
 ---pagebreak---                           - * -
6. It is proposed that the draft Regulation shall apply
   from 1 January 1992 for a year and it is therefore
   suggested that it is adopted in advance of that date in
   order to avoid any practical problems of application,
   in particular in respect of the reduction of certain
   rates of duties in the Combined Nomenclature
 ---pagebreak---                               -Ii-
                         : proposal for a
          COUNCIL REGULATION (EEC) NO        /91
                      of
    prolonging the measures taken under the agreements
  between the European Economic Community and the United
   States of America for the conclusion of negotiations
                 under GATT Article XXIV.6
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 113
thereof,
Having regard to the proposal from the Commission,
Whereas by an Agreement between the European Economic
Community and the United States of America for the
conclusion of negotiations under GATT Article XXIV.6 (1)
which was extended by an Exchange of Letters (2)
complementing that Agreement until 31 December 1991, the
Community agreed to take certain measures;
Whereas it is considered appropriate that the Community
shall apply the same measures until 31 December 1992,
HAS ADOPTED THIS REGULATION
 (1) OJ No L 98, 10.4.1987, p. 1
 ---pagebreak--- HAS ADOPTED THIS REGULATION
                        Article 1
The measures referred to in the Exchange of Letters
complementing the Agreement between the European Economic
Community and the United States of America for the
conclusion of negotiations under GATT Article XXIV.6
shall be applied by the Community until 31 December 1992.
                         Article 2
This Regulation shall enter into force on the day of its
publication in the Official Journal of the European
Communities.
It shall apply with effect from 1 January 1992.
This Regulation shall be binding in its entirety and
directly applicable in all Member States.
 Done at Brussels,
                               For the Council
                               The President
 ---pagebreak---                            T
                    FINANCIAL RECORD
1. Budget line concerned : Chap. 12 Art. 120
   Title of the measure concerned : Draft proposal for a
   Council Regulation (EEC) prolonging the measures taken
   under the agreements between the European Economic
   Community and the United States of America for the
   conclusion of negotiations under GATT Article XXIV.6
3. Legal basis : Art. 113 of the Treaty
   Objective : To ensure the continued application of the
   reduction of certain autonomous duties in the Combined
   Nomenclature by virtue of "Agreement for the Conclusion
   of Negotiations between the European Economic Community
   and the United States of America under GATT Article
   XXIV.6" on an autonomous basis
5. Cost of this measure : No significant change in the
   situation as compared with the previous year
 ---pagebreak---                                 é-
       IMPACT ON COMPETITIVENESS AND EMPLOYMENT RECORD
The present draft proposal will not alter the current
situation in respect of competitiveness and employment. On
the contrary, without these measures the United States of
America might consider retaliating against Community
exporters for a number of sensitive products.
 ---pagebreak---  ---pagebreak---                                                                     ISSN 0254-1475
                                                              COM(91) 482 final
                                                     DOCUMENTS
EN                                                                             11
                                Catalogue number : CB-CO-91-541-EN-C
                                                             ISBN 92-77-78042-8
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