CELEX: 51973PC0731
Language: en
Date: 1973-05-14
Title: PROPOSAL FOR A REGULATION OF THE COUNCIL adding the Philippines to the list of developing countries, pursuant to Regulation (EEC) Nos 2763/72 and 2764/72 (Submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 731
Vol. 1973/0142
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(73)731 final     ""
                                                   Brussels , 14 May 1973
                                    PROPOSAL FOR A
                              REGULATION OP THE COUNCIL
                  adding the Philippines to the list of developing
                  countries , pursuant to Regulation (EEC ) Nos 2763/72
                  and 2764/72
                   ( Submitted to the Council by the Commission)
  COM(73 ) 731 final
 ---pagebreak---                                                                          c
                            EXPLANATORY MEMORANDUM
1 . In its letter of 24 October 1972 addressed to the President of the
    Commission , which was transmitted to the Council on- 24 November 1972 ,
    the Mission of the Philippines to the European Communities requested
    that the Community grant generalized preferences in respect of cotton
    textiles and substitute products to the Philippines , although that
    country is not a signatory to the Long«-term Arrangement regarding
    international trade in cotton textiles (LTA).
2 . It should be recalled in this connection that the Community , in its
    offer concerning generalized preferences , restricted the granting of
    such preferences in respect of cotton textiles and substitute produots
    to those developing countries which were signatories of the LTA.
    However , in its revised offer , the Community accepted that preferences
    for those products could also be granted to countries which were not
    signatories , on condition that such countries entered into commitments
    with the Community similar to those contained in the said Arrangement .
    The Community thus granted preferences in respect of cotton textiles
    and substitute products as from 1 January 1973 to Afghanistan ,
    Bangladesh , and Thailand , which entered into an undertaking with the
    Community to respect the conditions set out in the letter whioh
    appears as an Annex^ .
3 . The preparatory work on the Commission 's proposals for generalized
    preferences for 1973 was already at too advanced a stage when the
    application from the Philippines arrived for it to be taken into con­
    sideration .   That is why the Commission is now putting forward a
    separate proposal .
4 « The Philippines * position as regards the exporting of cotton textiles
    and substitute products is comparable to that of Afghanistan ,
    Bangladesh and Thailand .    During 1968 , 19^9 * and 1970 there were no
1
  Replies have been received from Afghanistan and Thailand ;    that of
  Bangladesh haa not yet arrived .
 ---pagebreak---    imports of these produots into the Community from the Philippines .
    Consequently, the addition of the Philippines to the list of those
   "benefiting from preferences for cotton textiles and substitute products
   would have no effect on the level of the ceilings .     Moreover, in view
   of the small volume ( 11 tons ) of imports during 1971 » and the very
   restricted opportunities for the Philippines to export these products
   to the Community, the granting of preferences to that country for
   cotton textiles should not give rise to any economic problem during
   the next few years .
   The Commission therefore proposes that the Philippines be included in
   the list of countries to which generalized preferences are granted for
   cotton textiles and substitute products , subject to the same undertaking
   as that given earlier by Afghanistan , Bangladesh and Thailand .
. As regards the procedure to be followed in order to arrive at an
   arrangement with the Philippines , the Commission -is of the opinion
   that the procedure of an exchange of letters followed in the case of
  Afghanistan , Bangladesh    and Thailand could again be adopted .   The
   text of the letter to the Philippine authorities , shown in the Annex ,
   is the same as that sent to the authorities of those three countries
   except as regards the date on which the generalized preferences are to
  become operative .     In this connection it should be noted that the
   second recital of the proposal states that "such an undertaking has
  been given", which is not yet the case ; that being so , the publication
  and entry into force of the said Regulation should be deferred until
   such an undertaking has in fact been given .
  Jhe Commission is of the opinion that the case of the Philippines
   should not be dissociated from Ijhat.of the other three countries 0
  .concerned . - Only the delay in lodging the Philippines' application
  prevented it from . being considered at the same time as those of
  Afghanistan , Bangladesh and Thailand.
 ---pagebreak---                                        •3-
    The problems raised by the Philippines' enjoyment of preferences for
    cotton textiles and substitute products are in any case exactly the
    same as those connected with the extension of preferences for those
    products to the said three countries .
    It should therefore be possible to grant preferences to the Philippines
    for the products in question in accordance with the exceptional procedure
    adopted by the Council in the case of Afghanistan , Bangladesh and Thailand
    at its meeting of 18–19 December 1972 , of which the detailed rules
    of application were set out in a statement contained in an annex to the
    minutes of the meeting.
6 . On the basis of the foregoing, the attached proposal for a Regulation ,
    which is submitted for the approval of the Council , grants generalized
    tariff preferences to the Philippines by amending Regulations (EEC)
    HOB 2763/72 (Tariff quotas ) and 2764/72 ( ceilings ) concerning cotton
    textiles and substitute products .    It should be noted that these
    Regulations expire on 30 September 1973 .
 ---pagebreak---                                  Proposal for a
                           REGULATION OF THE COUNCIL ,
         cdding -the Philippines to "the list of developing ooxxntriss , purswmt
         to Regulation (3EC) ITos 27*53/72 end 2?o4/72
THE COUNCIL OP 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 ,
                                                       A
Whereas under Council Regulation (EEC ) No 2763/ 72 of 19 December 1972
opening, allocating and providing for the administration of Community
tariff quotas for certain textile products originating in developing
countries , and Regulation No 2764/72 of 19 December 1972 establishing
preferential tariffs in respect of certain textile products originating
in developing countries , the Common Customs Tariff duties are totally
suspended in respect of the said products originating in the countries which
are signatories of the Long-term Arrangement regarding international trade
in cotton textiles or possibly in the countries which enter into under­
takings with the Community similar to those in that Arrangement ; whereas
such an undertaking has been given by the Republic of the Philippines ;
whereas it thus appears appropriate to add the Philippines to the lists of
countries contained in Annex B to each of the above-mentioned Regulations ;
whereas this addition does not , however , entail any adjustment of the
size of the quotas , Community ceilings , or maximum amounts because during
the reference year in question , there were no exports from the Philippines
to the Community ;
  OJ No L 296 , 30 December 1972 , p.63
  idem , p . 69
 ---pagebreak---                                      -2-
• HAS ADOPTED THIS REGULATION :
                                  Article 1
  "The Philippines " is inserted in each of the lists of developing
  countries which enjoy generalized tariff preferences for "certain textile
  products , contained in Annex B to Council Regulations (EEC) Uos 2763/72
  and 2764/72 of 19 December 1972 .
                                  Article 2
  This Regulation shall enter into force on the third day following its
  publication in the Official Journal of the European Communities .
             This Regulation shall he "binding in its entirety and
             directly applicable in all Member States .
        Dono rt Erwcnels ,
        Done &t                                   For the Council
                                                          Comic
                                                  The President
 ---pagebreak---                                    Draft letter
                  -to the authorities of the Philippines on
                  the greeting to that country of generalized
                  preferences for cotton textile products and
                  products treated as such .
In response to the wish expressed "by your Government that the
Coccrunity s>?uid grant generalized preferences to your country for cotton
textile products and products treated as such , I have in the first place
the hoE-cur to recall that under the ter^s of the offer cade by the
Cocmnity at the United Sat ions Conference on Trade and Development in
IJcJ j according to w*"* ah preferences for cotton textiles covered "by the
Long-ters: Arrangeeiert would be granted to the countries enjoying
gesi-eraliz-ed preferences     rTn are signatories to the Lcng-tera Arr-srgggiact ,
ard fcr the duration of the said Arrangesent .        Nevertheless , under the
teres cf the ss^e offer , preferences ~ say also "be granted* during the sa^e
period, in accordance with corditions and detailed rules of           leeantat ion
to be laid daiei bi–laterally, to countries enjoying generalized preferences
vM c*> are not signatories to the Len^-tern Arrangement , but which undertake
vis–a-^Tis the Ccgmir.ity comitnents sirdlar to those ezisting under the
said Arrangement .
In this connection and in response to your application I as
instructed to infora you that the Corzrcjiity is prepared to grant your
country generalized preferences for cotton textiles ard products treated
as such on the corditions set out below.        !Ihe acceptance of these con­
ditions by your Govez^aent would be considered by the Corrrority to be a
con- itmerit similar, as far as your country is concerned , to those existing
under the Lcng-ters Arrangement binding the present beneficiary countries
enjoying preferences fcr cotton textiles .
In the period Suring which these preferences are granted, the
       3sion reserves the right in the event of threatened or actual
disruption of the Efixket , to adopt protective ceasures with regard to
eirort 3 froa yctr country of cotton textiles acd products treated as such
in accordance with a procedure ar^ rules siailar to those provided for in
Article 3 of the Locg-tera Arrangeaerfc regarding international trade in
ccttaei textiles .
 ---pagebreak---                                       •2-
The Community does^not consider it necessary^ in the present cir­
cumstances and without prejudice to its positions in relation to other
countries , to propose to your Government as a "similar commitment ", the
conclusion of a "bilateral agreement of the type concluded under Article 4
of the Long-term Arrangement with certain countries enjoying Community
generalized preferences for cotton textile products .
As the duration of the Community generalized preferences for cotton
textile products and products treated as such is at present limited to
the duration of the Long-term Arrangement , the generalized preferences
can , at the present stage , only "be granted to your country , as to the
other beneficiary countries , until 30 September 1973 .      This time–limit
in no way prejudices such measures as may be taken at a later stage by
the Community in respect of the period after that date . ■
In order that it - may be possible to include your r countryretmooig
the benefioiaries of generalized preferences for the products in question ,
I should be grateful if you would kindly confirm as rapidly as possible
your Government 's agreement to the foregoing .