CELEX: 51973PC2127
Language: en
Date: 1973-12-13 00:00:00
Title: RECOMMENDATION FOR REGULATION (EEC) OF THE COUNCIL on the conclusion of a Commercial Cooperation Agreement between the European Economic Community and the Republic of India and adopting provisions for its implementation (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 2127
Vol. 1973/0386
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        COM(73)2127 Final
                                                        Brussels , 13 December 1973
                RECOMMENDATION FOR REGULATION ( EEC ) OF TES COUNCIL
         on the conclusion of a Commercial Cooperation Agreement 'between
            the European Economic Community and the Republic of India
                ■ and adopting provisions for its inplementation
                    ( submitted to the Council by the Commission)
  C0Ï:(73 ) 2127 filial
 ---pagebreak---                                                                  1/508/7 3-E
                 Recommendation from -the Commission to the Council on the
                 conclusion of a Commercial Cooperation Agreement "between
                                      the EEC and. India .
1 . At its meeting on 3 April 1973 the Council authorized the Commission to enter
    into negotiations with India on a Commercial Cooperation Agreement and adopted
    certain guide-lines for these negotiations . On this basis four negotiating
    sessions were held (April , June , September and October 1973 ) between the Com­
    mission and the Indian delegation .
2 . The English text of the Agreement between the European Economic Community and
    India was finalised at the last negotiating session held on 30 October 1973 ?
    The Commission delegation was led by Mr. W. Ernst , Director-General for Exter­
    nal Relations of the Commission , and the Indian delegation by H.E. , Mr. K.B.
    Lall , Ambassador Extraordinary and Plenipotentiary , Head of the Indian Mission
    to the European Communities .
3 . The negotiated texts are the following?
    - The Commercial Cooperation Agreement between the European Economic Community
      and the Republic of India and three annexes thereto , including three Decla­
      rations and one exchange of letters .-
    The English texts of the documents have already been made available to repre­
    sentatives of Member States in the Article . 113 Committee .
4 . The Agreement and annexes thereto are the outcome of the negotiations between
    the Indian and Community delegation . They are consistent with the guide-lines
    adopted by the Council at its meeting on 3 April 1973 .
                                                                        • /• • •
 ---pagebreak---                                                                               1/508/7 3-E
                                                                              2.
   . The Commission therefore considers that it has completed the task entrusted
     to it by the Council , and recommends that the Council initiate the proce­
     dure   for the signature and. conclusion of the Agreement with India .
5 . With a view to the conclusion and implementation of the Agreement , the
     Commission herewith transmits to the Councils
     - a recommendation for a regulation on the conclusion of the Agreement
       and the annexes thereto ,   v        -'V    i :•>: aft'c A - - 'U - I-       •"
 ---pagebreak---                                                                        1/508/73-E
         RECOMMENDATION FOR REGULATION (EEC ) GF        CCCITOTL-
         on the conclusion of a Commercial Cooperation Agreement between
         the European Economic Community and the Republic of India and
         adopting provisions for its implementation
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
HAVING REGARD to the Treaty establishing the European Economic Community ,
and in particular Articles 113 and 114 thereof °
HAVING REGARD to the Recommendation of the Commission !
WHEREAS the Commercial Cooperation Agreement negotiated between the European
Economic Community and the Republic of India should be concluded ^
HAS ADOPTED THIS REGULATIONS
                                 Article 1
The Commercial Cooperation Agreement between the European Economic Community
and the Jttepublic of India , the text of which, is annexed to this Regulation ,
shall be concluded on behalf of the Community .
                                 Article 2
The President of the Council is hereby authorized to designate the persons
empowered to sign the Agreement and to confer on them the powers required
in order to bind the Community .
 ---pagebreak---                                                                       I/508/73-E
                                                                      2.
                                Article 3
The Community shall be represented on the Joint Commission provided for in
Article VII  of the Agreement "by the Commission , assisted by representatives
of the Member States .
                                Article 4
This Regulation shall enter into force on the third day following its
publication in the Official Jcbrnal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,                                  For the Council
                                                    The President
 ---pagebreak---                                                                      I/508/73-E
COMMERCIAL COOPERATION AGREEMENT EETJiIEEN THE EUROPEAN ECONOMIC COMMUNITY
                    AND THE REPUBLIC OP INDIA .
 ---pagebreak---                            ;                 • ,                        I/508/73-E
                                                                        l­
                                                                                    \
THE COUNCIL OF THE EUROPEAN COMMUNITIES , for the one part ,
THE GOVERNMENT OP INDIA , for the other part ,
HAVING REGARD   to the friendly relations and traditional links between India and
                the Member States of the Community and their mutual desire to
                consolidate and expand their commercial and economic relations ,
INSPIRED        by their common will to consolidate , deepen , and diversify their
                economic and commercial relations to the full extent of their~ '
                growing capacity to meet each other 's requirements on the basis'
                of comparative advantage and mutual benefit ,                         „
CONSIDERING
CONSIDERING     that trade is not an end in itself but means for achieving wider
                economic and social objectives ,
VIEWING
VIEWING         modern commercial policy as an important instrument for furthering
                international economic cooperation ,
DESIROUS
DESIROUS        of making their contribution to a new phase of international eco­
                nomic cooperation commensurate with their respective human , in­
                tellectual and material resources ,
BELIEVING
BELIEVING       that the time is opportune to give a new impetus to the mutual ■
                relationship between the enlarged Community and India ,
AFFIRMING
AFFIRMING       their common commitment to the promotion of international ;r;'-    '*
                economic relationship founded on freedom , equality , justice and         ,
                progress ,                                                              .
HAVE DECIDED
HAVE  DECIDED   to conclude a Commercial Cooperation Agreement and to this end
                have designated as their plenipotentiaries ?
THE COUNCIL OF THE EUROPEAN COMMUNITIES ;                                          .. ,
THE GOVERNMENT OF THE REPUBLIC OF INDIA ;                                       ; ' \
Who , having exchanged their Full Powers , found in good and due form ;
HAVE AGREED AS FOLLOWS ;
 ---pagebreak---                                                                       1/508/73-E
                                                                      2.
                                 ARTICLE I
The "two Parties are determined, to develop their commercial exchanges on the
basis of comparative advantage and mutual "benefit so as to contribute to their
economic and social progress and to the improvement of the balance of their
mutual trade at a level as high as possible .
                                 ARTICLE II
The two Parties shall accord to each other m their commercial relations most
favoured nation treatment in accordance with the provisions of the GATT .
                                 ARTICLE III
The two Parties shall grant each other the highest degree of liberalization
of imports and exports which they genrally apply to third countries and under­
take to discuss in regard to products of interest to either Party ways and
means of providing maximum facilities compatible with their respective policies
and obligations .                                                        '    '
                                 ARTICLE IV
The two Parties shall undertake to promote to the highest possible level the,
development and the diversification of Community 's imports; from India and
India 's imports from the Community. Both Parties shall take all appropriate
steps to achieve these results , including such particular measures which
are relevant to the pattern and potential of their commercial exchanges .
Further they agree to support the institutions which have been or may be
set up by them to enhance contacts and cooperation between their economic
organizations .
 ---pagebreak---                                                                       1/508/7 3-E
                                                                                3.
                                 ARTICLE Y
The two Parties recognize that cooperation between organizations concerned in
the field of exports to , and in the field of economic relations with , third
countries , especially developing countries , can contribute to the diversifi­
cation of their mutual contacts and to an expansion of international trade . Ac­
cordingly they undertake to examine the possibilities of promoting such coope­
ration and to create favourable conditions for furthering it .
                                 ARTICLE VI
The two Parties may develop economic cooperation , when linked with trade , in
fields of mutual interest to both Parties and in the light of developments
in the economic policies of the Cor.rmrity end of India .
                                  ARTICLE VII
There shall be set up a Joint Commission for commercial cooperation composed
of representatives of the Community and representatives of India . The Joint
Commission shall meet as often as necessary and at least once a year at an
agreed date and place . Extraordinary meetings may be convened by agreement
at the request of either Party. The Joint Commission may set up specialized
sub-commissions to assist it in the performance of its tasks .
                                 ARTICLE VIII
It shall be the task of the Joint Commission to ensure the proper functioning
of this Agreement , to devise practical measures to achieve its goals and to
discuss and pursue effectively , in the light of its principles and objectives ,
all matters which may arise in the course of its implementation . It shall be
incumbent upon it to examine any difficulties likely to hinder the development
and diversification of the commercial exchanges between the two Parties and
to recommend practical measures for action by the Community and India , as
appropriate .
                                 ARTICLE VX
The Joint Commission shall in particular be required :
a ) to seek ways and means of encouraging the development of economic and com­
    mercial cooperation between the Community and India , in so far as this would
    promote the development and diversification of trade and bring benefits to
    both Parties ;
 ---pagebreak---                                                                        1/508/7 3-E
                                                                                 4-
ID ) to study and. devise ways and means to overcome trade barriers and in parti­
     cular existing non-tariff and quasi-tariff barriers in the various sectors
     of trade , taking into account the relevant work undertaken in this field
'. by concerned international organizations 5
c ) to examine and recommend ways and means for the progressive adaptation of
     their trade pattern and marketing structures with a view to promoting the
     evolution of their commercial and economic relations in accordance with
     their complementary possibilities , as well as the long-term objectives of
     the economies of both Parties , so as to rectify imbalances and avoid malad­
     justments ;
d ) to facilitate exchanges of information on all subjects which may bear upon
     cooperation possibilities in the economic field and creation of favourable
     conditions for such cooperation on mutually advantageous bases between the
     Community and India *
                     '              ARTICLE X .
The contracting Parties agree that it shall equally be the task of the Joint
Commission to ensure the proper functioning of the sectoral agreements con­
cluded or yet to be concluded between the Community and India on jute , coir
and cotton textiles and cottage industry goods (handicrafts and handloom fa­
brics ) and that , to this end , it shall exercise the responsibilities entrusted
to the joint commissions set up under these agreements .
                                    ARTICLE XI
The Joint Commission shall adopt its own rules of procedure and programme of
work.
                                  ' ARTICLE XII
The provisions of this Agreement substitute those provisions of agreements
concluded between Member States of the. Community and India to the extent to
which these are either incompatible or identical with them .
 ---pagebreak---                                                                         1/508/7 3-E
                                                                                  5.
                                   ARTICLE XIII
The Annexes form an integral part of this Agreement .
                                   ARTICLE XIV
The Agreement shall apply to the territories where the Treaty establishing
the European Economic Community applies , on the conditions established in
this Treaty , and to the territories to which the constitution of the Republic
of India applies .
                                   ARTICLE XV    ■
0.) This Agreement shall enter into force on the first day of the month fol­
lowing the date on which the Parties have notified each other of the comple­
tion of the procedures necessary for this purpose . It is concluded for a
period of five years . It shall be extended from year to year if neither Party
denounces it six months before the date of expiry .
b ) If both Parties agree , modifications to this Agreement may , however , be
introduced at any time to take account of emerging situations and evolving
policies .
                                   ARTICLE XVI .: .
This Agreement is drawn up in two copies in the Danish , Dutch , English ,
Pb?ench , German , Hindi and Italian languages , each of these texts being
equally authentic .
 ---pagebreak---                                                                         1/508/7 3-E
                                                                        ANNEX I
                JOINT DECLARATION CONCERNING ART . 7 OP THE AGREEMENT .
1 . The level of representation from the two sides in the Joint Commission shall
    be as high as appropriate , depending upon the importance of the agenda .
2 . The representatives of both Parties in the Joint Commission will transmit
    the agreed recommendations to their respective authorities for consideration
    and action as speedily and effectively as possible .
    In the event of the Joint Commission being unable to evolve a recommendation
    on a matter considered by either Party to be urgent or important , it shall
    submit the view of the two sides to the respective authorities for further
    consideration .
3 . The Joint Commission should , while making proposals and recommendations , have
    due regard to India 's development plans and to the progress of economic , in­
    dustrial , social , environmental and scientific policies of the Community as
    well as to the level of economic development of both Parties .
4 . The Joint Commission would examine possibilities of and make recommendations ■'
    for 8xi efficient and coherent utilization of all available instruments , be­
    sides MEN tariffs and Generalized Preferences , to promote the trade of items
    of interest to India .
5 . The first meeting of the Joint Commission would take place as soon as possible
    after the entering into force of this Agreement . The exact date , venue and
    agenda will be decided through diplomatic channels .
                                                                          • /• • •
 ---pagebreak---                                                                                1/508/7 3-E
                                                                               ANNEX II
                                               Brussels ,
             Sir ,
             During the discussions which led to the conclusion this day of the
  Commercial Cooperation Agreement "between the EEC and the Republic of India ,
  the Community declared that it is prepared to "bind the tariff suspensions
  already applied autonomously in respect of the products listed below which
  are of particular interest to India . These concessions shall remain . val-id un­
  til they are confirmed or modified under GATT , with the agreement of , "both.
  Parties .
                               List of products concerned ;
  CCT :                                                                     Binding)-,
                 •       D e s e r i p t i o n                              proposed %
  No .
  09.02       Teas
              A. In immediate packings of a net capacity
                   not exceeding 3 kg                                           5
              B. Other                                                         Free
  09.04       Pepper of the genus "Piper "; pimento of the genus
              " Capsicum" or the genus "Pimenta"
              A. Neither crushed nor ground ;
                   I. Peppers                                                ,
                      a ) for the industrial manufacture of essential
                          oils or resinoids                                    Free
  O9.O0       Nutmeg , mace and cardamoms ;
              B. Crushed or ground ;
                   III . cardamoms                                             Jtee
  41.02       Bovine cattle leather
              ( including "buffalo leather ) and equine leather ,
              except leather falling within heading nos .
              41.06 . 41.07 or 41.08 ;
              A. East India kip , whole , whether or not the heads
                   and legs have "been removed , weighing each not
                   more than 4 I 5 kg net , not further prepared than
-      - -         vegetable -tanned , whether or- not-having -under-gone -
                   further preservative treatment with oil ., but
                   obviously unsuitable for immediate , use in the
                   manufacture of leather articles                             Free
             We should be grateful , if you would be kind enough to confirm , on
  behalf of the Republic of India , the above-mentioned understanding .
             I avail ngrself , Sir , of this opportunity to renew the assurances
  of my highest consideration .
  Mr.
  Head of the Indian delegation
 ---pagebreak---                                                                                 1/508/7 3-E
                                                                                ANNEX II
                                                       Brussels .
            Sir ,
            I have the honour "to acknowledge receipt of your letter of
which reads as follows ?
            "During the discussions which led to the conclusion this day of the
Commercial Cooperation Agreement between the EEC and the Republic of India , the
Community declared that it is prepared to "bind the tariff suspensions already
applied autonomously in respect of the products listed below which are of parti­
cular interest to India . These concessions shall remain valid until they are con­
firmed or modified under GATT , with the agreement of both Parties .
                                    List of products concerned ;
GCT --              - -      ...............   .... ..                         Binding
Heading                  D e scription                                         proposed %
Ko .
09-.02 -    Teas                    -        -          -         – –       -     –
            A. In immediate packings of a net capacity not
                exceeding 3 kg                                                    5
            B. Other                                                             Free
09.04       Pepper of the genus "Piper "; pimento of the genus
            " Capsicum" or the genus "Pimenta"
            A. Neither crushed nor ground ;
                I. Pepper ;
                    a ) for the industrial manufacture of essential
                        oils or resinoids                                        Free
O9.O0       Nutmeg , mace and cardamoms ;
            B. Crushed or ground ;
                III . Cardamoms                                                  Free
41.02       Bovine cattle leather
            ( including buffalo leather ) and ecruine leather , except
            leather falling within heading nos . 41.06 , 41.07 or
            41.08 ;
            A. East India kip , whole , whether or not the heads
                and legs have been removed , weighing each not
                more than 4»5 kg net , not further prepared than
                vegetable tanned , whether or not having undergone
                further preservative treatment with oil , but
                obviously unsuitable for immediate use in the
                manufacture of leather articles                                  Free
            We should be grateful , if you would be kind enough to confirm , on
behalf of the Republic of India , the above-mentioned understanding ."
           .©n behalf -of the Republic' of India i.I - have4r-fche>honotr* to . confirmrthe
above-mentioned understanding .
            I avail myself , Sir , of this opportunity to renew the assurances of
my highest consideration .
Mr .
Head of the Community delegation
 ---pagebreak---                                                              1/508/7 3-E
                                                           ANNEX III
                   DECLARATION OP TEE COMJIOTITY CONCERNING
                          •  TARIFF ADJUSTMENTS
The Community confirms that the Generalized Scheme of Preferences (G. S.P. )
which was autonomously put into force by the EEC on 1 July 1971 on the "basis
of resolutions of 19^9 » No . 21 ( II ) of the second conference of UNCTAD in­
cludes products for which in the course of the negotiation of the Commercial
Cooperation Agreement , signed this day , total tariff suspensions were re­
quested "by India.
The Community is prepared , in the course of its endeavours to improve the
system of Generalized Preferences , to take into account the interest of
India in the extension and strengthening of its trade relations with the
Community.
The Community is also prepared to examine in the Joint Commission the possi­
bilities for further tariff adjustments to promote the development of trade
between India and the Community .
The Community understands , that India will also be prepared to discuss in
the Joint Commission the Community 's proposals , if any , in regard to tariff
adjustments by India bearing on the development of trade between the two
Parties , taking into consideration India 's development needs .
 ---pagebreak---                                                             1/508/73-E
                                                            AENEX III
               DECLARATION OP INDIA CONCERNING TARIFF ADJUSTMENTS
India understands that the Community is prepared , in the course of its
endeavours to improve the system of Generalized Preferences , to take into
account the interest of India in the extension and strengthening of its
trade relations with the Community . In this connection , India will identify
for consideration by the Community the areas in which Community 's 1974
GSP Scheme can he improved , more especially in the context of the provi­
sions of the Joint Declaration of Intent .
India further understands that the Community is also prepared to examine in
the Joint Commission the possibilities of further tariff adjustments to
promote the development of trade between India and the Community .
In this connection India will notify to the Community the list of the pro­
ducts in respect of tvhich total tariff suspension is desired for being
examined in the first meeting of the Joint Commission .
India will also be prepared to discuss in the Joint Commission the
Community 's proposals , if any , in regard to tariff adjustments by India
bearing on the development of trade between the two Parties , taking into
consideration India 's development needs .