CELEX: 51977PC0222
Language: en
Date: 1977-06-02 00:00:00
Title: Recommendation for a COUNCIL DECISION authorizing the Commission to open negotiations with Hungary for the conclusion of an Agreement on trade in textiles (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 222
Vol. 1977/0084
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(77)222 final
                                             Brussels . 2 June 1977
                            Recommendation for a
                              COUNCIL DECISION
                   authorizing the Commission to open
                   negotiations with Hungary for the
                   conclusion of an Agreement on trade
                                 in textiles
               ( submitted to the Council tor the Commission )
CCfM(77 ) 222 final
 ---pagebreak---                      EXPLANATORY MEMORANDUM
1•      The Community is a party to the Arrangement regarding Interna­
tional Trade in Textiles (MFA ). Article 4 of this Arrangement leaves
open the possibility for participating countries to conclude bilateral
agreements between importing and exporting countries . The Community was
of the opinion that it was through the conclusion of such bilateral
agreements with its principal suppliers that the main objectives of the
MFA, particularly the orderly and equitable development of trade in
textiles , could best be achieved.
        In accordance with this view , negotiations have been conducted
with a number of non–Community countries .
2.      The Permanent Representatives Committee decided at its meeting on
12 March 1975 that negotiations should also be proposed by the Community
to the three State–trading countries which are parties to the MFA – Hungary ,
Poland and Romania (without prejudice to negotiations on a comprehensive *
trade agreement ). It also agreed the text of a letter to be addressed by
the Commission to the three countries indicating the willingness of the
Community to open negotiations which , "while taking account of the diffe­
rences in commercial structures , would be based on the provisions of
Article 4 of the MFA" (Bee text of letter in Annex A ).
        On 8 March 1977 "the Hungarian authorities replied (see Annex B )
that they were prepared to open bilateral negotiations with the Community
with a view to concluding an Agreement on trade in textiles , negotiations
which would take place on ths basis of proposals concerning bilateral
negotiations made in the framework of the provisions of the M.F.A. ,
taking particular account of Article 4 thereof .
    *
   • •
3?      In view of Hungary r s reply to the Community offer , the Commission
is of the opinion that negotiations with Hungary should be opened as soon
as possible *
                                                                 •/•
 ---pagebreak---          In -unofficial conversations "between the Commission 's services and.
the Hungarian authorities and in meetings of the Council 's Textiles Group
on the preparation of negotiations with one of the State–trading countries
                    1
referred to above     certain elements which could serve as a basis for these
negotiations have emerged .
        In the light of these elements the Commission considers that the
negotiations with Hungary should be governed by the same criteria as those
used for the other negotiations which have already taken place , preserving
those items which are necessary to take account of the differences in
commercial structures mentioned in the Commission 's letter , referred to
above in point 2 .
        On the internal level , the provisions adopted for the prededing
negotiations , particularly burden–sharing , should apply®
4«      Consequently , the Commission recommends to the Council , pursuent '
to Article 113 of the Treaty , that it adopt the attached decision ,,
 1  It should be noted that negotiations have meanwhile taken place with
    Romania , this country having accepted the Community 's offer to negotiate ,
    and an Agreement was initialled with that country on 10 November 1976 «
    A recommendation for a Council Decision authorizing the Commission to
    open negotiations with Poland is at present being examined by the
    Council , now that Poland has also accepted the Community 's offer to
    negotiate .
 ---pagebreak---           RECOMMENDATION FOR A COUNCIL DECISION
authorizing the Commission to open negotiations with Hungary
for the conclusion of an Agreement on trade in textiles
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 recommendation from the Commission ,
Whereas Article 4 of the Arrangement regarding International Trade in
Textiles leaves open the possibility for the conclusion of bilateral
agreements between importing and exporting countriei j
Whereas the Community has considered that the conclusion of such bilateral
agreements with the third countries which are its principal suppliers would
best enable it to achieve the objectives of the said Arrangement regarding
 international trade in textiles ;
Whereas , consequently, the Community has proposed to Hungary, a party to
the said Arrangement , the opening of negotiations for the conclusion of
an Agreement on trade in textiles $ whereas Hungary has responded favourably ,
HAS DECIDED AS FOLLOWS s
                           Article 1
        The Commission ie hereby authorized to open negotiations with
Hungary for the conclusion of an Agreement on trade in textile products ,
 in accordance with the provisions of the Arrangement regarding International
Trade in Textiles .
 ---pagebreak---         The Commission shall conduct these negotiations in consultation
 with the Article 113 Cofflmittee and on the basis of the directives   ■
annexed hereto#
Done at Brussels .                            For the Council
                                              The President
 ---pagebreak---                                                        ANNEX
            Directives for negotiations with Hungary
I.    Items identical with those adopted with regard to all the third
      countries with which the Community has negotiated ,
      a) Voluntary restraint agreement , with
          an administration system which includes double–checking .
      b ) Coverage of the agreement established selectively on the
          basis of the criteria in Article 4 of the MFA : elimination
          of real risks of market disruption and the fixing of ceilings
          based on that concept .
      c ) Binding consultation clause and regional measures .
      d ) Provisions for flexibility, carry-over and anticipation.
II .  Additional items
      a ) Inclusion of linen in the coverage of the agreement .
      b ) Provisions relating to outward processing traffic : of the kind
          adopted for Yugoslavia .
III . Spécifie items
      deriving from the differences in commercial structures
      (particularly prices ).
      – Conditions analogous to those adopted on this subject in the
         negotiations with Romania*