CELEX: 51990PC0400(04)
Language: en
Date: 1990-08-31 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION AUTHORIZING THE COMMISSION TO OPEN NEGOTIATIONS WITH THIRD COUNTRIES HAVING TEXTILE AGREEMENTS WITH THE COMMUNITY WITH A VIEW TO ADAPTING THOSE AGREEMENTS TO TAKE ACCOUNT OF THE GERMAN UNIFICATION

2. 10. 90                                    Official Journal of the European Communities                                     No C 248/1
                                                                      II
                                                             (Preparatory Acts)
                                                       COMMISSION
                              The Community and German unification — Proposals for legislation (x)
                                                            COM (90) 400 final
                                          (Submitted by the Commission on 22 August 1990)
               i1} Already published in Official Journal of the European Communities No C 230 of 15 September 1990:
                   — Proposal for a Council Directive on interim measures applicable after the unification of Germany, in
                      anticipation of the adoption of transitional measures by the Council in cooperation with the European
                      Parliament
                   — Proposal for a Council Regulation on interim measures applicable after the unification of Germany, in
                      anticipation of the adoption of transitional measures by the Council after consultation of the European
                      Parliament
                                                          Recommendation for a
                                                          COUNCIL DECISION
                                                                   of . . .
               authorizing the Commission to open negotiations with third countries having textile agreements with
               the Community with a view to adapting those agreements to take account of the German
                                                                 unification
                                                               (90/C 248/01)
Introduction                                                                   The Commission services have agreed with the
                                                                               authorities of the German Democratic Republic and the
1. The recently signed Treaty (Staatsvertrag) between the                      Federal Republic of Germany by means of an Exchange
    Federal Republic of Germany and the German                                 of Letters which measures were to be introduced by the
    Democratic Republic deals, inter alia, with the                            former German Democratic Republic for the second half
    progressive integration of the former German                               of 1990 to ensure that the Community commercial policy
    Democratic Republic into the legal system of the                           in the textile sector is not circumvented.
    Community in advance of the formal unification of the
    two German States.
    In pursuit of the objectives outlined in the
    abovementioned Treaty, the Council of the European                      2. Following the unification of the two Germanies, the
    Communities         has     adopted      Regulation      (EEC)             unified Germany is expected to apply the acquis
    No 1794/90 of 28 June 1990 dealing with transitional                       communautaire on textiles. However, in order to take
    measures concerning trade with the German Democratic                       account of the new situation for textile and clothing
    Republic ( ! ). Article 2 (1) (a) of that Regulation provides              imports in the unified Germany, all bilateral agreements
    that the German Democratic Republic shall introduce                        with third countries and arrangements with preferential
    into its trade with third countries the Common Customs                     countries, concluded under the 1986 textile negotiating
    Tariff, Community customs legislation and other                            Directives or under subsequent specific negotiating
    common commercial policy measures. These measures                          Directives (China and USSR) will be amended. The
    are to be applied as from 1 July 1990.                                     Commission, therefore, needs negotiating directives
                                                                               which will authorize the Commission to negotiate such
(') OJ NoL 166, 29. 6. 1990, p. 1.                                             adaptations with all the countries concerned.
 ---pagebreak--- No C 248/2                              Official Journal of the European Communities                                 2. 10. 90
3. The amendments could be effected by increasing the              5. Concurrently with these amendments, the Community
   Community quotas by a certain percentage and by                    should update the Community global ceilings for
   allocating this increase to the German share of the quota.         1991.
   The formula for such increases would be similar to the
   one used following the accession of Spain and Portugal to       6. The Commission accordingly recommends the Council
   the Community, whilst taking into account traditional              to decide that:
   trade flows and bona fide agreements the former German
   Democratic Republic has concluded with its trading                 — the Commission be authorized to open negotiations
   partners by 30 June 1990.                                              with all third countries- having bilateral textile
                                                                          agreements or arrangements with the Community
                                                                          containing quantitative restrictions so that the
                                                                          necessary adjustments can be made to take account of
4. Amendments will be necessary for 1991 for the majority                 the German unification,
   of the bilateral agreements, because the expiring date of
   these bilateral agreements is 31 December 1991, except             — the Commission conduct the negotiations in
   for two agreements (USSR and China) which expire on                    accordance with the Directives annexed hereto and in
   31 December 1992.                                                      consultation with the Article 113 Committee.
 ---pagebreak--- 2. 10. 90                               Official Journal of the European Communities                                          No C 248/3
                                                               ANNEX
                                                   NEGOTIATING DIRECTIVES
          1. Principles
             — Adjustments designed to take account of the unification of the two Germanies must conform to the textile
                 trade policy adopted by the Council in December 1977 and confirmed in February 1982 and March 1986
                 with the conclusion of textile agreements with third countries.
             — The adjustments will be applicable up to the expiry of the bilateral textile agreements, which is at the end
                 of 1991, except for the China and USSR agreements which run until the end of 1992.
          2. Countries concerned
             The exercise will involve all those countries having bilateral agreements or arrangements with the Community
             containing quantitative restrictions (see point 4 of this Annex).
          3. Substantive provisions
             A. MFA COUNTRIES
                 (a) Fixing the quantitative levels
                     Levels will be adjusted for Germany wherever the agreements or arrangements currently provide for a
                     Community level allocated among all Member States or a regional quota for Germany.
                     Those increases will be based on existing trade flows. However, they may not be lower than a level
                     calculated according to the formula which had been used following the accession of Spain and Portugal
                     to the Community, which consists of a certain percentage of the EEC basket exit threshold. In
                     accordance with this formula of calculation, the percentage of increase in this case should be 4,5
                     %.
                 (b) Community basket exit for 1991
                     Basket exit levels for 1991 should be calculated by applying the percentages fixed in the bilateral
                     agreements to total imports in 1990 (for the German Democratic Republic in 1989) into the enlarged
                     customs territory of the Community. If this reference base turns out to be lower than that used prior to
                     German unification, then, exceptionally, the latter shall be retained.
                 (c) Regional basket exit
                     In order to avoid a generalized readaptation of the burden-sharing and the regional basket exit for all
                     Member States, it is proposed to continue applying in 1991 the same formula as previously.
             B. PREFERENTIAL COUNTRIES
                 Only the provisions of paragraph A (a) above will apply. These countries will be granted more favourable
                 arrangements.
 ---pagebreak--- No C 248/4                             Official Journal of the European Communities                               2. 10. 90
           4. Countries which have agreements or arrangements with the Community with quantitative levels
              Bilateral agreements MFA-type                                 Arrangements
              Argentine                     Poland                         Morocco
              Brazil                        Romania                        Egypt
              Peru                          China                          Malta
                                            USSR                           Tunisia
                                                                           Turkey
              Hong Kong                     Yugoslavia
              Macao
              South Korea
              Malaysia
              Philippines
              Singapore
              Thailand
              Indonesia
              India
              Pakistan
              Sri Lanka
              Bulgaria
              Czechoslovakia
              Hungary
           NB: The autonomous arrangement for Taiwan will also need to be adapted according to the same formula.
               Likewise the quotas for the State-trading countries under the autonomous regime should be adapted.