CELEX: 52006PC0730
Language: en
Date: 2006-11-27
Title: Draft Proposal for a Council decision on the signing and the provisional application of a bilateral agreement in the form of an Exchange of Letters between the European Community and Ukraine concerning the extension and amendment of the Agreement between the European Community and Ukraine on trade in textile products

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      Brussels, 27.11.2006
                                                      COM(2006) 730 final
                                                      2006/0238 (ACC)
                                         Proposal for a
                                   COUNCIL DECISION
   on the signing and the provisional application of a bilateral agreement in the form of an
    Exchange of Letters between the European Community and Ukraine concerning the
    extension and amendment of the Agreement between the European Community and
                             Ukraine on trade in textile products
                                (presented by the Commission)
EN                                                                                           EN
 ---pagebreak---                             EXPLANATORY MEMORANDUM
   1) CONTEXT OF THE PROPOSAL
      •   Grounds for and objectives of the proposal
      The bilateral agreement on trade in textile products between the European Community
      and Ukraine will expire on 31 December 2006. Ukraine may lack time to complete the
      process to accede the World Trade Organisation (WTO) before that date. The proposal
      provides for an extension of the present textile agreement until 31 December 2007,
      with a tacit renewal for a period of one more year (31 December 2008). This will
      ensure legal certainty in trade in textile and clothing products until Ukraine joins the
      WTO.
      •   General context
      The bilateral agreement regulating trade in textiles with Ukraine has been in place
      since 1993 and has been amended on several occasions. The agreement, as amended,
      includes tariff commitments on the side of Ukraine (tariffs are equal to EU levels), a
      snapback clause in case of the non-respect of those tariff levels and a clause prohibiting
      the introduction of non-tariff barriers.
      Neither quantitative restrictions nor double-checking requirements are currently in
      place and the proposed amendment ensures the continuation of the present open regime
      of trade in textile and clothing products with Ukraine.
      •   Existing provisions in the area of the proposal
      OJ L 123, 17.5.1994; OJ L 94, 26.4.1995; OJ L 81, 30.3.1996; OJ L 337, 30.12.1999;
      OJ L 16, 18.1.2001; OJ L 75, 16.3.2002; OJ L 49, 22.2.2003; OJ L 65, 11.3.2005.
      •   Consistency with the other policies and objectives of the Union
      An extension of the bilateral agreement on trade in textile products will continue to
      provide legal certainty for operators on both sides and thereby ensure smooth bilateral
      trade in textile products until WTO accession.
      Should Ukraine join the WTO before 31 December 2006 the need for the proposed
      amendment would lapse.
   2) CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
      •   Consultation of interested parties
      This Decision provides for the signature and the provisional application of an
      international trade agreement amending (and extending) an agreement that otherwise
      would have expired. No formal consultation is necessary.
      •   Collection and use of expertise
      There was no need for external expertise.
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 ---pagebreak---       •   Impact assessment
      Impacts have been assessed in the course of the negotiations of the international
      agreement.
      It was therefore not necessary to conduct an impact assessment of this measure.
   3) LEGAL ELEMENTS OF THE PROPOSAL
      •   Summary of the proposed action
      The proposal provides for an extension of the bilateral agreement on trade in textiles
      between the European Community and Ukraine until 31 December 2007 with a tacit
      renewal for a further period of one year (until 31 December 2008), on the terms and
      conditions currently in place.
      There will be no particular negative effects or risks for developing countries.
      •   Legal basis
      Article 133 of the Treaty establishing the EC.
      •   Subsidiarity principle
      The proposal falls under the exclusive competence of the Community. The subsidiarity
      principle therefore does not apply.
      •   Choice of instruments
      Proposed instruments: decision.
      Other means would not be adequate for the following reason(s).
      There are no other means available for the signature and the provisional application of
      an international agreement.
   4) BUDGETARY IMPLICATION
      The proposal has no implication for the Community budget.
EN                                            3                                               EN
 ---pagebreak---                                                           2006/0238 (ACC)
                                            Proposal for a
                                       COUNCIL DECISION
    on the signing and the provisional application of a bilateral agreement in the form of an
     Exchange of Letters between the European Community and Ukraine concerning the
     extension and amendment of the Agreement between the European Community and
                                Ukraine on trade in textile products
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular
   Article 133 in conjunction with Article 300(2), first sentence of the first subparagraph thereof,
   Having regard to the proposal from the Commission,
   Whereas:
   (1)     The Commission has negotiated on behalf of the Community an agreement in the form
           of an Exchange of Letters between the European Community and Ukraine concerning
           the extension and amendment of the Agreement on trade in textile products with
           Ukraine.
   (2)     Subject to its possible conclusion at a later date, the proposed agreement should be
           signed on behalf of the Community.
   (3)     This bilateral agreement should be applied on a provisional basis as of 1 January 2007,
           pending the completion of procedures required for its conclusion, subject to the
           reciprocal provisional application by Ukraine,
   HAS DECIDED AS FOLLOWS:
                                               Article 1
   Subject to a possible conclusion at a later date, the President of the Council is hereby
   authorised to designate the person(s) empowered to sign on behalf of the European
   Community the Agreement in the form of an Exchange of Letters between the European
   Community and Ukraine concerning the extension and amendment of the Agreement between
   the European Community and Ukraine on trade in textile products, initialled on 5 May 1993,
   as last amended by an Agreement in the form of an Exchange of Letters signed on 9 March
   2005.
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 ---pagebreak---                                                       Article 2
   The annexed Agreement in the form of an Exchange of Letters shall be applied on a
   provisional basis, pending its formal conclusion and subject to reciprocal provisional
   application of that Agreement by Ukraine, from 1 January 2007.
                                                      Article 3
   The Commission may, in accordance with the procedure referred to in Article 17 of Council
   Regulation (EEC) No 3030/93, of 12 October 1993, on common rules for imports of certain
   textile products from third countries1, adopt the measures foreseen in point 6 of the Exchange
   of Letters signed on 19 December 20002, consisting of reinstating the quota-regime applicable
   during the year 2000 in case of non-application by Ukraine of the tariff rates described in
   paragraph 2.2 of the Exchange of Letters referred to in Article 1 of this Decision.
                                                      Article 4
   This Decision shall be published in the Official Journal of the European Union.
   It shall enter into force on the day following its publication in the Official Journal.
   Done at Brussels,
                                                        For the Council
                                                        The President
   1
            OJ L 275, 8.11.1993, p. 1. Regulation last amended by Commission Regulation (EC) No 35/2006 of 12
            January 2006 (OJ L 7, 12.1.2006, p. 8).
   2
            OJ L 16, 18.1.2001, p. 3.
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 ---pagebreak---                                                 ANNEX
   AGREEMENT in the form of an Exchange of Letters between the European
   Community and Ukraine, represented by the Government of Ukraine, concerning the
   extension and amendment of the Agreement between the European Community and
   Ukraine on trade in textile products
   A. Letter from the Council of the European Union
   Sir,
   1.       I have the honour to refer to the Agreement between the European Community and
            Ukraine on trade in textile products initialled on 5 May 1993, as last amended by the
            Agreement in the form of an Exchange of Letters signed on 9 March 2005 (hereafter
            referred to as the 'Agreement').
   2.       According to Article 20(1), the Agreement shall only apply until 31 December 2006.
            The European Community proposes to extend the duration of the Agreement, subject
            to the following amendments and conditions:
   2.1.     The text of Article 20(1) shall be replaced by the following:
            'This Agreement shall enter into force on the first day of the month following the
            date on which the Parties notify each other of the completion of the procedures
            necessary for that purpose. It shall be applicable until 31 December 2007. Thereafter,
            the application of all the provisions of this Agreement shall be extended
            automatically for a period of one more year up to 31 December 2008, unless either
            Party notifies the other at least six months before 31 December 2007 that it does not
            agree with this extension.'
   2.2.     The tariff rates applied by Ukraine to exports of EC origin of products of HS
            chapters 50-63 will not exceed the final rates agreed in Appendix 7 of the Exchange
            of Letters between the European Community and Ukraine signed on 19 December
            2000.
   3.       Should Ukraine become a Member of the World Trade Organisation (WTO) before
            the date of the expiry of the Agreement, the agreements and rules of the WTO shall
            be applied from the date of Ukraine's accession to the WTO.
   4.       I should be obliged if you could kindly confirm the acceptance of your Government
            of the foregoing. Should this be the case, this agreement in the form of an Exchange
            of Letters shall enter into force on the first day of the month following the day on
            which the Parties have notified each other that the legal procedures necessary to this
            end have been completed. In the meantime, it shall be applied provisionally from 1
            January 2007 on the condition of reciprocity.
   Please accept, Sir, the assurance of my highest consideration.
   For the Council of the European Union
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 ---pagebreak---    B.Letter from the Government of Ukraine
   Sir,
   I have the honour to acknowledge receipt of your letter of ….. which reads as follows:
   “ Sir,
   1.       I have the honour to refer to the Agreement between the European Community and
            Ukraine on trade in textile products initialled on 5 May 1993, as last amended by the
            Agreement in the form of an Exchange of Letters signed on 9 March 2005 (hereafter
            referred to as the 'Agreement').
   2.       According to Article 20(1), the Agreement shall only apply until 31 December 2006.
            The European Community proposes to extend the duration of the Agreement, subject
            to the following amendments and conditions:
   2.1.     The text of Article 20(1) shall be replaced by the following:
            'This Agreement shall enter into force on the first day of the month following the
            date on which the Parties notify each other of the completion of the procedures
            necessary for that purpose. It shall be applicable until 31 December 2007. Thereafter,
            the application of all the provisions of this Agreement shall be extended
            automatically for a period of one more year up to 31 December 2008, unless either
            Party notifies the other at least six months before 31 December 2007 that it does not
            agree with this extension.'
   2.2.     The tariff rates applied by Ukraine to exports of EC origin of products of HS
            chapters 50-63 will not exceed the final rates agreed in Appendix 7 of the Exchange
            of Letters between the European Community and Ukraine signed on 19 December
            2000.
   3.       Should Ukraine become a Member of the World Trade Organisation (WTO) before
            the date of the expiry of the Agreement, the agreements and rules of the WTO shall
            be applied from the date of Ukraine's accession to the WTO.
   4.       I should be obliged if you could kindly confirm the acceptance of your Government
            of the foregoing. Should this be the case, this agreement in the form of an Exchange
            of Letters shall enter into force on the first day of the month following the day on
            which the Parties have notified each other that the legal procedures necessary to this
            end have been completed. In the meantime, it shall be applied provisionally from 1
            January 2007 on the condition of reciprocity.”
   I have the honour to confirm that the Government of Ukraine is in agreement with the content
   of your letter.
   Please accept, Sir, the assurance of my highest consideration.
   For the Government of Ukraine
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