CELEX: 51981PC0266
Language: en
Date: 1981-05-27
Title: Proposal for a COUNCIL REGULATION (EEC) on the conclusion of the Agreement for Commercial and Economic Cooperation between the European Economic Community and India (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 266
Vol. 1981/0090
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
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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
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                      COM(81)266 final
                                      Brussels . 27 May 1981
                       ■ Proposal for a
                    COUNCIL REGULATION ( EEC )
                        .
         on the conclusion of the Agreement for Commercial
         and Economic Cooperation between the European Eco­
         nomic Community and India
            ( submitted to the Council by the Commission )
 ---pagebreak---                                        EXPLANATORY MEMORANDUM
  B / decision of 22 April 1980 , the Council authorised the Commission to
  open negotiations with India , with a view to the conclusion of an agreement
  for commercial and economic cooperation to replace the 1974 ^ Commercial
  Cooperation Agreement between the European Economic Community and India .
  In accordance with that Council decision , and in accordance with the Article
  113 Committee,' the Commission conducted negotiations with India between June
  1980 and April 1981 .       The English text of the negotiated Agreement has been
  initialled on 14 Aprils 1981 by the Heads of the Delegations after they had
  noted that it correctly - represented the results of the negotiations .
                                                       /                        .      .
  On this occasion , the; negotiator of the Commiss ton read out the following
  declaration to the Indian delegat ion 'with a view to overcoming a possible
  French reserve : »
       " The Commission and the Council declare that their interpretation of
         Article 6 , first alinea of the Agreement is that it does not provide
         for the intervention of the European Bank of investments , whereas it'
         does, not confine the intervention of financial institutions only to                   >
     ;   institutions of private nature ."
  Besides the text of the Agreement for Commercial and Economic Cooperation , v
  both sides negotiated the text of a Protocol concerning Commercial and
  Economic Cooperation between the' European Coal and Steel Community and
  India . ' ■       "                                                       J                 : 7
  Once the Agreement is signed the Commission will adopt a decisibn concluding
  the Protocol on behalf of the ECSC .             /         .1             ' '        ^ ' ■*
  The English version of the negotiated texts has , already been placed at the
  disposal of the Member States' representatives in £he Article 113 Committee .
  The Commission considers that the text of the Agreement is acceptable to the
              k - ■                                  ■          ' . .             ..
  Community .       It therefore recommends that the Council initiate the procedures
  for signing and concluding the Agreement for Commercial and Economic Cooperat
• with India .
                                     / '  . 4                                                    %
                            •                                         . • •          ,   "
  With a view to ^ he conclusion and implementation of the Agreement , the
  Commission herewith transmit to the Council a proposal for a regulation con­
  cluding the Agreement and the Annexes thereto .          '
 ---pagebreak---                                 Proposal for a
                             COUNCIL REGULATION ( EEC )
        on the conclusion of the Agreement for Commercial and
        Economic Co-operation between the European Economic Community
        and India .
THE COUNCIL OF THE, EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 113 and 235 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament , ( 1 )
Whereas the conclusion by the European Economic Community uf the Agreement
for Conmercial and Economic Co-operation between the European Economic Community
and    India         appears necessary for the attainment of the ends of the
Community in the sphere of .external economic relations ^ whereas it appears
that certain forms of economic co-operation provided for by the Agreement exceed
the powers of action provided for in the Treaty , and in particular those speci­
fied in the field of the common commercial policy,
HAS ADOPTED THIS REGULATION :
                                   Article 1
The Agreement for Commercial and Economic Cooperation between the European
Economic Community and India is hereby approved on behalf of the Community .
The text of the Agreement is annexed to this Regulation .
(1 )
 ---pagebreak---                                Article 2
 Pursuant to Article 15 of the Agreement , the President of the Council
 shall give notification that the procedures necessary for the'entry into
 force of the Agreement have been completed on the part of the European
 Economic Community C1 ).
                               Article 3
The Community shall be represented on the Joint Commission referred
to in Articles 10 and 11 of the Agreement by the Commission , assisted by
representatives of the Member States .
                               Article 4
         Regulation shall enter into force on the-day following its publication
This Régulation
      th ^ Officiai
 in the    Official Journal of the European Communities .                ^
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,
                             ♦
                        . <.
                                  !
                                                 For the Counci I
                                                 the President
                                                                  «4.
( 1 ) the date of entry into force of the Agreement will be published in the
       Official Journal of the European Communities by the General Secretariat
       of the Council .
 ---pagebreak---  AGREEMENT FOR COMMERCIAL AND ECONOMIC COOPERATION
between the European Economic Community and India
                                                             )
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
of the one part ,
THE GOVERNMENT OF INDIA ,                               "
                                                               S
of the other part ,               •
HAVING REGARD to the friendly relations and historic links between India
and the Member States of the Community and to the foundations for cooperation
                                                   f
 laid by the Agreement between India and the Community signed on 17 December ,
1973 anc^ which came into operation on 1 April , 1974 ;
NOTING with satisfaction the progress achieved during the operation of the
said Agreement in the development of commercial and economic relations
between India and the Community ;
                                                                           {
BELIEVING that the time is opportune to give a new impetus to the mutual
relationship between India on the one hand , and the Community on the other ;
MINDFUL that the more dynamic relationship which both the European Community
and India desire calls for closer cooperation across the whole range of
commercial and economic endeavour to the full extent of their growing capacity
to meet each other 's requirements on the basis of comparative advantage ,
mutual benefit and consistent with their developmental needs ;
PERSUADED that such cooperation should be realised in an evolutionary and
pragmatic fashion , as their policies develop ;
REAFFIRMING their determination to expand mutual trade , and recognising that
trade is not an end in itself but a means of achieving wider economic and
social objectives , and as an important instrument for furthering international
economic cooperation ;
 ---pagebreak---     DESIROUS of making their contribution to a new phase of international
    economic cooperation commensurate with their respective human , intellectual
    and material resources ;                               '
   .EMPHASISING their . common commitment to the promotion of international
    economic relations founded on freedom ; equality, justice and progress ;
    HAVE decided to conclude -a Commercial and Economic Cooperation Agreement
   between India on the one part , and the European Economic Community, on the
   other, and to this end have designated as their plenipotentiaries :
  who have agreed as follows :                 <
                            _           .  Article 1
                                • V .                ·               }
  The Contracting Parties are determined to consolidate, deepen and diversify
  their commercial exchanges on the basis of comparative advantage and mutual
  benefit , with a view to increasing as rrtuch as possible mutual trade and its
  rate of growth .       .
                                          Article 2
 The Contracting Parties shall , in their commercial relations , accord each
 other most -favoured-nation treatment in conformity with the provisions of
 the General Agreement on Tariffs and Trade .
                                          Article 3
The Contracting Parties shall grant each other the highest degree of liberalisation
of imports and exports which they generally apply to third countries and under­
take to discuss ways and means of providing maximum facilities compatible with
their respective policies and obligations, with regard to.products of interest
to either Party .                     .           t- :
 ---pagebreak---                             Article 4
 In accordance with their respective policies and objectives , and with the
 need , recognised by both Parties , to promote new relations of dynamic complement­
 arity , based on comparative advantage and mutual benefit , in the industrial field
between India and the European Economic Community , the Contracting Parties
                                        t
 undertake to promote the development and diversification of their commer­
 cial exchanges to the highest possible level .    To this end , they shall , in
particular , take the following steps :                *        . 1
a ) maintain consultation    and cooperation in the solution of international
     commercial and economic problems which either Party may consider of
     interest ;                                    '
b ) use their best endeavours to maintai n and strengthen an open and
    equitable international trading system and respect their obligations '
    under the General Agreement on Tariffs and Trade ;
                                                                      ■J
c ) intensify exchange of avai lable information regarding their respective
    markets and industries , and their changing trends and policies with *
    a view to identifying possibilities for increased production and
    improved marketing prospects in order to attain optimal overall         ,
    economic growth ;
d ) promote visits    by persons , groups and delegations from trade , economic
    and industrial circles to facilitate industrial and technical exchanges
    and contacts connected with trade , foster the organisation of fairs and
    exhibitions by both sides , and the appropriate provision of services
    including publicity for the development of trade in items of special
    interest to either Party ;
e ) support the institutions which have been or may be set up by them to
    enhance contacts and cooperation between their commercial organisations ;
f ) bring together economic operators of both sides to better identify
    sectors and products in which the production and     exports of each should
    be developed , and support market development programmes , based on
    such identification ;
g ) promote studies for the fulfilment of the objective ^ of this Article .
                                  . 1 ■             '               '
                                                                           V -a "
                                                                         1
 ---pagebreak---                                       Article 5
  In the Light of their respective policies and economic objectives , the
  Contracting Parties shall foster economic cooperation in all fields of
  mutual interest in order to contribute to the developmeat of their
  respective economies / to raise living standards , and to meet their
  developmental needs .   To this end the Contracting Parties agree to take
  the following steps :
  a ) promote industrial cooperation and transfer of technology through
      concerted measures at Community and national - levels of both Parties'
      for creating favourable conditions for such cooperation , on a long- \
      term basis through a fuller uti lisation - of each other 's material ,
      manpower and technological resources , on the basis of comparative V
      advantage and mutual benefit ;
  b ) promote and facilitate increased and mutually beneficial investment ,
      consistent with the relevant laws and policies ;
  c ) support institutions which have been or may be set up by them to
      enhance contacts and cooperation between their economic organisations ;
  d ) facilitate exchanges of information on all subjects which may have a .
,     bearing upon the prospects for cooperation in "the economic field ;
  e ) encourage technological and scientific cooperation including joint
      programmes of research and development , for example in the fields of'
      energy sources ; energy conservation , energy related technology ,     .
      protection and improvement of the environment .
                          ' •         Article 6                                \
  The Community will take all possible measures to intensify its support ,
  within theframework of its programmes in favour of non-associated
  developing countries , for India's development programmes , through direct
  concessional transfers as well as through institutional and other sources
  of finance in accordance with the rules and policies of. such institutions .
  The Parties shall encourage and facilitate the promotion of cooperation
  between financial institutions of the two regions
                                                  -
                                                       . -
                                                                    A    \
            •   v                                                         V - N.- .
 ---pagebreak---                                     Article 7
The Contracting Parties shall hold friendly consultations on any problems
that may arise in the achievement of the aforesaid objectives and shall
exchange information and seek to obtain mutually satisfactory solutions
to these problems .  At the request of either of the Parties , consultations
shall be held as soon as possible , on any problems adversely affecting
bilateral commercial and economic relations , and any representation on
such problems made by either Party shall be examined in a positive manner .
                       /                           .
                                    Article 8
The Contracting Parties recognise that cooperation between operators and
organisations concerned in the field of export to , and economic relations
with third countries , especially developing countries,' wi 11 be to their,
mutual benefit .  Accordingly , they undertake to promote such cooperation
and to create favourable conditions for furthering it .
                                    Article 9
Without prejudice to the relevant provisions of the Treat i es establishing
the Communities , the present Agreement and any action taken thereunder
shall in no way affect the powers of the Member States of the tommunity
to undertake bilateral activities with India and to conclude , where
appropriate , new economic cooperation agreements with India .
                                                                  V- )
 ---pagebreak---                                        Article 10
                                                      *•                    \
The Contracting Parties agree to set up a Joint Commission whose tasks shall
                                                  / •
be to ensure the proper functioning of this Agreement , to devise practical
measures for achieving 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 implemenation . It shall be incumbent upon the Joint
Commission to examine any difficulties likely to hinde'r the development and
diversification of commercial and economic cooperation between the Con­
tracting Parties and to recommend, practical measures for action by the Con-'
tracting Parties ; while making such recommendations , the Joint Commission-
shall have due regard to the development plans of India and to the progress
of economic , industrial , social , environmental and scientific policies of -
both Parties as well as their level of economic development .
The Joint Commission shall , in particular , b6 required :               ^
a ) to seek ways and means of encouraging the development of economic and
  , commercial cooperation between India on the one part , and the European •
    Economic Community on the other , in accordance with the provisions of-
    this Agreement ;         ,. •         - "                            '
b ) to study and devise ways and means of overcoming trade barriers , tariff
    and non-tariff , in the various sectors of trade ;                        ,
c).to examine and recommend ways and means for the progressive adaptation
 • of the trade pattern . and marketing structures of the Contracting Parties
    with a view to promoting the evolution of their commercial and economic
    relations in accordance wi^h their complementary possibilities as well as
    the long-term objectives of the economies of the Contracting Parties , so
    as to avoid imbalances and maladjustments ;
d ) to make recommendations on the use of Community funds available for the
    implementation of the objectives of the present Agreement . In respect of
    such funds as may be put at the disposal of the Joint Commission by the
    Contracting Parties in a jointly agreed manner and in accordance with
    their respective criteria , to diecide expenditure on relevant studies and
    act ivi ties ;                         •-   -
                                     .  •                '             V
e ) to - examine possibilities of and make recommendations for an efficient and
    coherent utilisation of all available instruments , besides most-favoured-
    nation tariffs and generalized preferences , to promote trade in items of
    interest to both Parties .    .         - '
 ---pagebreak---                              Article 11
The' Joint Commission shall be composed of representatives of both sides ,
at an appropriately high level .    The Joint Commission shall meet as often
as necessary and at least once a year at an agreed time and place ;
periodically it shall review the * implementation of this Agreement and
lay down guidelines for future action .    The Joint Commission shall meet
alternately in Brussels and Mew. Delhi .
                                                   f
Extraordinary meetings may be convened by common agreement at the request
of either Contracting Party .   If necessary the Joint Commission may set up
specialised sub-commissions to assist it in the performance of its tasks .
The representatives of the Contracting Parties in the Joint Commission
will transmit the agreed recommendations to their respective authorities ,
for consideration and action to be taken as speedily and effectively as possible
In the event of the Joint Commission being unable to adopt a recommendation on
a matter considered by either Contracting Party to be urgent or important ,
it shall submit the view of the two (sides to the respective authorities i /i
order to arrive at a mutually satisfactory solution .
The Joint Commission shall adopt its own rules of procedure and programme
of WOFk .
                              Artide 12
The Contracting Parties agree    that it shall also be the task of the Joint
Commission to ensure the proper functioning of the sectoral agreements concluded
or which may be concluded between India and the European Economic Community on
jute , coir and cotton textiles and cottage industry goods ( handicrafts and
                         »                                    *
handlooms ) and that , to this end , it shall exercise the responsibilities
entrusted to the Joint Commissions set up under these agreements .
                              Article 13
 The Annexes form an integral part of this Agreement .
 ---pagebreak---                                             i Article 14
This Agreement shall apply to the territories in which the Treaty
establishing the European Economic Community is applied and under
the conditions laid down in the said Treaty on the one hand and to
the territory of India - on the other hand .
                                 '   1
                                              Article 15              .
                                        ν
This Agreement shall enter into force on the first day of the month
following the date on which the Contracting Parties have notified each
other of the completion of th® procedures necessary for this purpose .
It is concluded for a period of five years .             It shall be automatically
extended from year to year if neither Contracting Party denounces.it
six months before the date of expiry .             If both Contracting Parties
agree , amendments to this Agreement may , however , be introduced at any
time to take account of emerging situations and evolving policies .
                               '       \                      4
                                              Article 16  .
                   \               '                 '            *
This Agreement is drawn up . in two copies in the Danish , Dutch , English ,
French , German , Greek , Italian and Hindi languages , each of these texts
being equally authentic . •               .   .
 ---pagebreak---                                                                              M-
                                 ANNEX I
                                                      i.
Declaration of the European Economic Community concerning tariff adjustments
The Community confirms that the Generalized Scheme af Preferences ( GSP )
was autonomously put into force by' the European Economic Community on
1 July 1971 on the basis of Resolution 21 ( II ) of the second United
Nations Conference on Trade and Development held in 1968 . The Community
is prepared ,, in the course of its endeavours to improve the system of
Generalized Pref erences , to take into account the interests 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
possibilities 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 , with regard to
tariff adjustments by India bearing on the development of trade between
the Contracting Parties , taking into consideration India 's development
needs .
 ---pagebreak---                               ANNEX II
  Declaration of the Government of India concerning tariff adjustments
  India understands that the Community is prepared , in the course of its
  endeavours to improve the system of Generalised Preferences , to take »
  into account the interests 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 the
  Community 's Generalised Scheme of Preferences can be improved / more
  especially in the context of the provisions of the Joint Declaration
  of Intent .                                              '      '
> India further understands that the Community is also prepared to examine
  in the Joint Commission the possibilities for further ^tariff adjustments
                                           ■ι
  to promote the development of trade between India and the Community .
  In this connection India will notify to the Community the list of the
  products in respect    of which total tariff suspension is desired , for
  examination by the Joint Commission .
                                                         *     >
  India will^also be .prepared to discuss in the Joint Commission the .
  Community 's proposals , if any , with regard to tariff adjustments by
  India bearing on the development of trade between the Contracting
  Parties , taking injto consideration India 's development needs .
 ---pagebreak--- Declaration of the European Economic Community
                   \
In the course of the negotiations of the Commercial and Economic
Cooperation Agreement between the Community and India , the Indian
side presented a list of products for which a binding at zero of
the rate of duty in the Common Customs Tariff of the European
Economic Community was requested .             .■
At present these products which are covered by the Indo-EEC J^ite «
and Coir Agreements enter the Community at zero rates of duty under
the Generalized Scheme of Preferences ( GSP ).
5706        * Yarn of jute or of other textile bast fibres of heading
         • '  No 5703
5710 A + B    Woven fabrics of jute or of other textile bast fibres of     \
              heading No 5703
5802 A I      Coir mats and matting , and tufted carpets - carpeting and
                                    /
              rugs
6203 A II
6203>         Sacks and bags , of a kind used for the packing of goods ,
              other than used
The Community confirms that the above mentioned products are all covered
at zero-duty in the Generalized Scheme of Preferences which was autono­
mously put into force by the European Economic Community on 1 July 1971
on the basis of resolution 21 ( II ) of the second United Nations Conference
on Trade and Development held in 1968 , and that it is not its intention
to withdraw them from GSP in the foreseeable future .
The Community is prepared , in the course of its endeavours to improve the
system of Generalized Preferences , to take into account the interests of
India in the extension and strengthening of its trade . relations with the
Community .
 ---pagebreak---                                                                                  Α}·
                                 PROTOCOL
                         i                        '
  concerning Commercial and Economic Cooperation between the
  European Coal and Steel Community and India
- THE COMMISSION OF THE EUROPEAN COMMUNITIES , ON BEHALF OF'
  THE EUROPEAN COAL AND STEEL COMMUNITY , AND
  THE GOVERNMENT OF THE KINGDOM OF. BELGIUM
  THE GOVERNMENT OF THE KINGDOM OF DENMARK
  THE GOVERNMENT OF THE FEDERAL REPUBLIC OF . GERMANY
  THE GOVERNMENT OF THE FRENCH REPUBLIC
  THE GOVERNMENT OF THE HELLENIC REPUBLIC             ,  '               -       .
  THE GOVERNMENT OF IRELAND                                   ~
  THE GOVERNMENT OF THE ITALIAN REPUBLIC
  THE GOVERNMENT OF THE GRAND DUCHY OF LUXEMBOURG
  THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS
  THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND       -
  of the one part , and
  THE GOVERNMENT OF INDIA
. of the other part ,
                                       '    *■» '   •
  HAVE AGREED AS FOLLOWS :
                                  Article 1                                '
  The Provisions of Articles 1 to 5 of the Agreement for Commercial and
  Economic Cooperation between the European Economic Community and India "
  signed in 1                on          '              shall also apply
  in the matters covered by the Treaty establishing the European Coal and
  Steel Community .
                                  Article 2
  This Protocol shall apply to the territories to which the Treaty establishing
  the European Coal and Steel Community applies , on the conditions laid down
  in that Treaty , and to the territory of India .                  .
                                                                             ./.
 ---pagebreak---             /
                                        2
                                     Artide 3
This Protocol shall enter into force on the first d?y of the month
following the date on which the Contracting Parties notify each other
of the completion of the procedures necessary for this purpose .     It
shall cease to apply if the Agreement referred to in Articlel is
denounced .
                                     Art i c te 4
This Protocol is drawn up in two copies in the Danish , Dutch , English ,
French , German , Greek , Hindi and Italian languages , each text being
equally authentic .                                              .
                                                                 V.V