CELEX: 51976PC0662
Language: en
Date: 1976-12-13 00:00:00
Title: RECOMMENDATION FOR A REGULATION OF THE COUNCIL concluding an Agreement between the European Economic Community and the Arab Republic of Egypt on trade in textiles (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 662
Vol. 1976/0200
 ---pagebreak--- Disclaimer
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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(76)662 final
                                                   Brussels , 13 December 1976
                                                              \
                    RECOMMENDATION FOR A REGULATION OP THE COUNCIL
                 concluding an Agreement between the European Economic
                 Community and the Arab Republic of Egypt on trade in
                                       textiles
                      ( submitted to the Council by the Commission)
                                                                               I
COM( 76 ) 662 final
                                                    I
                                                                !
      \
                                                        !
                                                       /
 ---pagebreak---                     EXPLANATORY MEMORANDUM
 1 . By a deoision of 2*f February 1976 , the Council authorised the
 Commission to open negotiations with the Arab Republic of Egypt
 for the conclusion of an Agreement on trade in textiles .    This
 Agreement , negotiated under the provisions of Article 4 of the
 Arrangement regarding International Trade in Textiles , will replace
the various autonomous or bilateral dispositions in force for the textile
products between the Community and its Member States on the one hand and
Egypt on the other
 2.  In accordance with the above Council Decision and in consultation
with the Article 113 Committee , the Commission conducted negotiations
with Egypt on 12 and 13 May 1976#      Following these negotiations
a draft Agreement was drawn up .
 3.  The essence of the draft Agreement is a clause laying down a
consultation procedure which may be engaged whenever , in the Community * s
opinion , conditions in any of its markets are such that a limitation
on trade in any product covered by the Agreement appears necessary to
eliminate real risks of market disruption.     Where such consultations
are requested , Egypt has agreed to limit at a defined level the issue
of export licenoes for the -product in~?iueBtion . ~ The Agrementr-appHeiy
to those categories of textiles products , originating in and exported
from Egypt , to which the Geneva Arrangement applies .
    For its part , the Community has undertaken , for these same pro­
ducts and subject to the satisfactory operation of the Agreement , to
suspend all quantitative restrictions in force within the Community ,
not to introduce new quantitative restrictions and to refrain from
invoking the provisions of Article 3 of the Geneva Arrangement *
5.   The heads of delegation found the draft Agreement to be in accor­
dance with the results of the negotiations and initialled the text
on 13 May 1976 .
6 . The Commission considers that this draft Agreement constitutes-a
result that is acceptable to the Community * It proposes that the
Council conclude this Agreement by adopting the draft Regulation
annexed hereto *
 ---pagebreak---              RECOMMENDATION FOR A REGULATION OF THE COUNCIL
     concluding an Agreement "between -the European Economio Community
            and the Arab Republic of Egypt on trade in textiles
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economio Community ,
and in particular Artiole 113 thereof ;
Having regard to the recommendation from the Commission ;
Whereas the Agreement on trade in textiles negotiated between the
European Economic Community and the Arab Republic of Egypt should be
concluded ;
HAD ADOPTED THIS REGULATION :
                          Article 1
The Agreement between the European Economic Community and the Arab
Republic of Egypt on trade in textiles , the text of which is given in
the Annex , is hereby concluded on behalf of the Community .
                         Article 2
The President of the Council shall notify the other Contracting Party
of the accomplishment by the Community of the procedures required for
the entry into force of the Agreement *
                         Article 3
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities *
Done at Brussels ,                             For the Council
                                               The President
 ---pagebreak---                                            I
        DRAFT FOR INITIALLING
AGREEMENT BETWEEN THE ARAB REPUBLIC OF
   »
              E G Y P T
               AND THE
     EUROPEAN ECONOMIC COMMUNITY
                                        s
        ON TRADE IN TEXTILES
                                 13.5.1976
 ---pagebreak--- The Couhcal of the European Communities
                              of the one part .
The 0ov4nftment of the Arab Republic of Egypt of the other part ,
Desiring to ensure the orderly and equitable development of trade in
text ilelk between the European Economio Community, hereinafter called
"the Coiirniunity" and the Arab Republic of Egypt , hereinafter called
"Egypt " i
                                                         «
Having freftard to the provisions of the Arrangement regarding Inter­
national trade in Textiles (hereinafter referred to aM the Geneva
Arrangement ) and especially its Article 4 ,
Have decided , in a spirit of mutual co-operation and lln conform :.ty
with thft daid Geneva Arrangement , to conclude this -Agreement ant to
this end have designated as their Plenipotentiaries :
THE COUNCIL OP THE EUROPEAN COMMUNITIES :
THE COVERNWENT OP THE ARAB REPUBLIC OF EGYPT t
Who have agreed as follows t
 ---pagebreak---                           Article 1
1,     The Parties recognise and corlfirm that , subject to the provi­
sions of this Agreement and without prejudice to their rights and
obligations under the General Agreement on Tariffs and Trade , and
under their   Agreement dated 18 December , 1972 , the conduct of
their mutual trade in textiles shall be governed by the provi­
sions of the Geneva Arrangement .
2.     This Agreement shall apply to trade in those categories of .
textiles products , originating in and despatched from Egypt to
which the Geneva Arrangement applies .
            $
 ---pagebreak---                            Article 2
    The Community undertakes , in respect of the categories of
textiles products to which this . Agreement applies , and subject
to the satisfactory operation of this Agreement , and in particular
Article k hereof , to suspend forthwith all quantitative restric­
tions at present in force within the Community , not to introduce'
nev; quantitative restrictions , and to refrain from - invoking the .
provisions of Article 3 of the Geneva Arrangement .
AU .
 ---pagebreak---                            Article 3
       The Parties ehall     enter promptly into consultations with
each other , at the request of either and in conformity with the pro­
visions of the Geneva Arrangement , on any matter concerning their
trade in textiles and in particular on any problems arising from the
application of this Agreement# Consultations held tinder the provisions
of this Article shall be approached by the Parties in a spirit of
compromise and with a view to the conciliation of differences existing
                                                              & %>
between them *                                                    n,   (
 ---pagebreak---                                  Article 4
                                                      ....                           \
1.       In view of the desire of -the Community and Egypt to avoid , on
one hand , real risks of market disruption and , on the other hand , dis­
ruption to the textile trade of Egypt , and having full regard to the
need for equitable treatment of participating countries in the
Geneva Arrangement , the following specific consultation procedure
shall apply to the products to which this Agreement applies .
2.       The Community may request consultations with a view to reaching
agreement on an appropriate level of restraint for any product to which
this Agreement applies whenever in the..>d.cw of the Community , con­
ditions in an^- of its markets are such that a limitation on further
trade in any such product may be necessary to eliminate real risks
of market disruption ( as defined in Annex A of the Geneva Arrangement ) .
The consultation procedure referred to in this paragraph will only be'
resorted to sparingly and will be implemented in a manner consistent
with the principles and objectives of the Geneva Arrangement .
3.     The request for such a consultation shall be accompanied within
a reasonable period of time , by a statement of the market conditions
in the Community which , in the opinion of the Community, make necessary
the request for consultations .
4*       Until such time as a mutually satisfactory solution has been
reached , Egypt undertakes , if so requested by the Community , to limit
issue of export licences for the products in question to the Community ,
or to the region or regions of the Community market as indicated by th-.;
Community . For the purpose of establishing any level of rest rein I
for such limitation of export licences by Egypt , the Community
&hal ] not treat Egypt 's historical trade performance as bean .* nee -.
B&ri ly determinant ; the Community shall have full regard both to
the equi I able treatment of Egypt so compared with othev fjirppl.i er.>
of like textile proc'ueta with which the Community has reset 3 at ed
bi : i.t-.rnl agroer. -jilts v.ndcv tho Geneva Arraivjonrztfc , an <* rO.ro ,. -- si
c.'~ « iv y be;, to          ' r, volition a.c v. potential now en'.          ir.
pe ct of certain textile prooucts .
 ---pagebreak---                           Article «f continued
5.     Tha Parties shall consult as soon as possible v/ithin $0 days
following the communication of the statement referred to in paragraph 3
above and will make their best efforts to complete such consxiltations ,/ O
within £o days of their commencement#                                        A_
                                                                           Nfc le ,
6.    In the event that the Parties are unable to reach , within a rea­
sonable period of time , a satisfactory solution during the consultation
provided for in this Article , either of the parties may refer the matter
to the Textiles Surveillance Body in accordance with Article 11 ,
paragraph 4 » Of the Geneva Arrangement . Either Party choosing to
adopt such a cotr re of action , shall notify the other in advance
of its intention .
7.    Consultations will take place at the request of Egypt in ordsr
to review the need for the maintenance or modification of any level of
restraint     established under - this Article whenever market conditions
which led to the establishment of such level of restraint no longer
prevail#                                                             .    f~)
                                                                   g A•
 ---pagebreak---                           Article 5
      The Parties   shall exchange all useful information conoernin
their mutual trade in texiiles in oi-der to ensure the successful
implementation of this Agreement *
                                   Λ
 ---pagebreak---                             Article 6
Article!Anyb hereof
        I
              leve^# shall
                      of restraint
                           be manegodthatunder
                                           may bea system
                                                    established undercontrol
                                                          of double
d' tails of which are set out in the Annex hereto .
A U,
                                       $
 ---pagebreak---                           Article 7
1.      The Parties shall take all possible measures to ensure that
traditional channels and methods of trade between the Community and
                                 ♦
Egypt are maintained .                                    1
                                                            L^- 1   y
                                      y
 ---pagebreak---                          Artici e 8
                      9
      This Agreement shall apply to the territories where the
Treaty establishing the European Economic Community applies , on
the conditions established in the said Treaty . ,and to Epypt .
 ---pagebreak---                 ■s
                         Article 9
1.     This Agreement shall enter into force on the first day of the
month following the date on which .the Contracting Parties have noti­
fied each other of the completion of the procedures necessary for
the purpose . It shall remain in force until 31 December 1977 »
2.     This Agreement^hall have effect from 1 January 1976.
3.     Either Party may at any time propose modifications to this
Agreement or denounce it provided that notice is given at least
120 days "before the expiry of any twelve-month period ; in the latter
event the Agreement will come to an end at the expiry of the said
twelve-month period .                               • .         /-j  '
 ---pagebreak---                            Article 10
       This Agreement shall be drawn up in tv»o copies in the Danish ,
Dutch , English , French , German , Italian and Arabic languages , each
of these texts being equally authentio.
 ---pagebreak---                                                                             ANNEX
           As agreed betv/een the Parties in . Article 6 of the Agreement ,
 the administration of any restraint established under Article k shall
be based on a system of double control . The details of this system
have been agreed betv/ een the Parties and are set out below .
           The competent authorities within the Community will , automati­
cally and without delay , accept imports of textile products on sub­
mission of the importer 's application together with a certified copy
of the export licence . The competent authorities within the Community
shall be entitled to require the presentation of an export licence
in respect of goods ofirginating in Egypt of the categories where the
                  0
provisions of Article k have been invoked .
          These export licences will be issued by the Egyptian authorities
up to the total amount of the levels of restraint .
                                                              *
          The export licence must specify :
           I. destination ( relevant Member State )
          2 . sériai number
          3. importer 's name and address
          4« exporter 's name and address
          5* ne"t weight ( in kilograms or metric tons ) or other units as may
              be agreed upon
          6 . description of product ( including Customs Cooperation Council
              Nomenclature , formly called BTN number )
          7 * certification by the Egyptian authorities that the quantity
               has been debited against the level of rertrsint for 'export ?:
               to the Community ( relevant Member State ) or , v < rc expro­
               priate , iij for immediate re-export or for inv.ard processing
               and cubr.cquent re-export outside the Community .
          The competent authorities within the Community will r.ot rair.c
difficulties j.11 the event of a descropancy between the weight iriic^';'.
in tlio export licence and the shipment, or import weight provided it
ic vithin roononjibl n lir/ot ,-1 , v.'hils tho Egypt inn authorities !, . lor 1 hci :-
I-art- % fill c.iutc -n- oM    keep r?tiy dic<.repwr.cior: ty u icinini
 ---pagebreak---                                                              ΑΝΝίίΧ , ρ . ί
         In the event of total or partial withdrawal of an export
 licence , the Egyptian authorities will notify the competent autho­
 rities within the Community of such total or partial withdrawal .
The competent authorities within the Community will take the appro­
priate measures in accordance with prevailing administrative arrange-
mentf,
        The Egyptian authorities will forward to the competent autho­
rities within the Community , via the Representations of the Member
States of the Community and directly to the Commission , quarterly
returns showing the total quantity covered by the export licences
issued against any levels of restraint established for exports to the
Community *
        The Community will forward to the authorities of E&ypt , on n
quarterly basis , precise statistical information of imports of such
products into the Community .
                                                           à \l .