CELEX: 21977A0218(01)
Language: en
Date: 1977-02-08 00:00:00
Title: Agreement between the European Economic Community and the Federative Republic of Brazil on trade in textile products

No L 47/2                               Official Journal of the European Communities                              18 . 2 . 77
                                                         AGREEMENT
                 between the European Economic Community and the Federative Republic of Brazil
                                                  on trade in textile products
              THE COUNCIL OF THE EUROPEAN COMMUNITIES,
              of the one part,
              THE GOVERNMENT OF THE FEDERATIVE REPUBLIC OF BRAZIL,
              of the other part,
              DESIRING to ensure the orderly and equitable development of trade in textiles between the
              European Economic Community (hereinafter referred to as 'the Community') and Brazil,
              HAVING REGARD to the provisions of the Arrangement regarding international trade in
              textiles (hereinafter referred to as 'the Geneva Arrangement') and in particular Article 4 thereof,
              HAVE DECIDED, in a spirit of mutual cooperation and in conformity with the Geneva Arrange­
              ment, to conclude this Agreement and to this end have designated as their Plenipotentiaries:
              THE COUNCIL OF THE EUROPEAN COMMUNITIES :
              THE GOVERNMENT OF THE FEDERATIVE REPUBLIC OF BRAZIL :
              WHO HAVE AGREED AS FOLLOWS :
                          Article 1                                 ment, provided that exports to the Community of
                                                                    such textile products originating in and dispatched
                                                                    from Brazil do not exceed the agreed quantitative
The Parties recognize and confirm that, subject to                  limits ,
the provisions of this Agreement and without
prejudice to their rights and obligations under the
General Agreement on tariffs and trade, the conduct                 2. The Government of the Federative Republic of
of their mutual trade in textiles sJ'hall be governed               Brazil shall establish quantitative 'limits on exports
by the provisions of the Geneva Arrangement.                        to the Community in accordance with Annex I, and
                                                                    undertakes to take the appropriate measures to ensure
                                                                    that the quantitative limits slhown therein are not
                                                                    exceeded.
                          Article 2
                                                                    3 . The Community shall not object to the
1 . In respect of those categories of textile products              aforementioned quantitative limits being exceeded
whioh are set out in Annex I, being textile products                in the event of additional demand developing on the
originating in and dispatched from Brazil, and subject              market of the Community, on the understanding
to the satisfactory operation of this Agreement, the                that the additional quantities shall be fixed by
Community shall not introduce new quantitative                      common agreement between both Parties.
restrictions, shall suspend the operation of any
previously in force, and shall refrain from invoking                4. Quantities of the quota shares set out in Annex I
the provisions of Article 3 of che Geneva Arrange­                  not taken up by a Member State of the Community
 ---pagebreak--- 18 . 2 . 77                         Official Journal of the European Communities                              No L 47/3
may be re-al'located to another Member State in                quantities which shall not be charged to the quanti­
accordance with the procedures in force in the Com­            tative limits .
munity. The Community undertakes to respond
within four weeks of its receipt to any request made
by the Government of the Federative Republic of                                         Article 4
Brazil for such reallocation . It is understood that
any re-allocation so effected would not need to be              1 . The Parties shall enter promptly into consul­
confined within any limits set in flexibility provisions       tations with each other, at the request of either and
established elsewhere in this Agreement.                       in conformity with the provisions of the Geneva
                                                               Arrangement, on any problems arising from the
                                                               application of this Agreement. Consultations held
5 . All other quantitative restrictions wihich have been       under the provisions of this Article shall be
notified by the Community to the Textiles                      approached by both Parties in a spirit of compromise
Surveillance Body under Article 2 ( 1 ) of the Geneva          and with a view to the conciliation of differences
Arrangement, shall, unless justified under the                 existing between them.
provisions of GATT or included in agreements
negotiated or measures adopted pursuant to the                 2. The Parties shall consult as soon as possible
provisions of Article 3 of the Geneva Arrangement,             within 30 days following the request and will make
be suspended as soon as possible after the conclusion          their best efforts to complete such consultations
of the Agreement and in any case by 31 March 1977 .            within 30 days of their commencement.
                                                               3 . In the event that the Parties are unable, within
6. The Parties shall cooperate in implementing the             a reasonable period of time, to reach a satisfactory
measures necessary for the purpose of this Article.            solution during the consultations provided for in
                                                               this Article, either of the Parties may refer the matter
                                                               to the Textiles Surveillance Body in accordance with
                                                               Article 11 (4) of the Geneva Arrangement. The Party
                        Article 3                              choosing to adopt such a course of action shall
                                                               notify the other of its intention.
1 . With the exception of Category No 2 (woven
fabrics of cotton, unbleached and bleached), imports                                    Article 5
into the Community of the textile products shown
in Annex I which are for immediate re-export or for            If, having regard to the provisions of the Geneva
inward processing and subsequent re-export outside             Arrangement, either Party considers that it is being
the Community shall not be subject to quantitative             placed in an inequitable position in respect of trade
limits established under this Agreement, provided              in textiles as compared with a third country, that
they are entered as sudh under an administrative               Party may seek consultations with the other with
system of control in force for this purpose within             a view to taking appropriate remedial action .
the Community.
                                                                                        Article 6
2. In any case where the competent authorities
within the Community ascertain that imports
described in paragraph 1 above have been retained              1 . Portions of any quantitative limit shown in
for consumption within the Community, the latter               Annex I which are not used during any calendar
will notify the Government of the Federative                  year may be carried over and added to the
Republic of Brazil on a quarterly basis of the amounts         corresponding quantitative limit in the following
involved. Brazil shall in such cases at the request            year, within a limit of 10% of the latter.
of the Community, charge such amounts against the
quantitative limit or limits in question for the current       2. "Within a limit of 10% of each of the quantitative
calendar year or for the next following year.                  limits shown in Annex I, advance deliveries shall be
                                                               authorized from the corresponding quantitative limit
                                                              established for the following year. Amounts delivered
3 . In any case where the competent authorities                in advance shall be deducted from the quantitative
within the Community ascertain under an adminis­              limits for the products in question for the following
trative system of control in force that imports of             year .
textile products shown in Annex I have been charged
against quantitative limits established therein but           3 . Within any one calendar year, unused portions
subsequently re-exported outside the Community, the            of quantitative limits shown in Annex I in respect of
competent authority concerned will inform the                  any region of the Community market may be
Brazilian authorities on a quarterly basis of the             transferred to another quantitative limit established
 ---pagebreak--- No L 47/4                           Official Journal of the European Communities                              18 . 2. 77
for that same region of the Community market                   2. Should either Party inform the other that the
within a ceiling of 7% of the recipient quantitative           application of this Agreement has given rise to
limit.                                                         difficulties regarding the maintenance of existing
                                                               commercial relations between importers in the Com­
4. The preceding flexibility provisions shall not, in          munity and their suppliers in Brazil, the Parties will
any given year, result in a quantitative limit for any         consult together in accordance with the procedures
                                                               set out in Article 4 above .
category being exceeded by more than 15% of the
quantitative limit for that category for that year.
                                                                                      Article 11
5 . The flexibility provisions contained in this
Article may only be applied by Brazil following                This Agreement shall apply to the territories where
written notification to the Community by the                  the Treaty establishing the European Economic Com­
Brazilian authorities .                                        munity applies, on the conditions established in the
                                                               said Treaty, and to the territory of the Federative
                                                               Republic of Brazil .
                        Article 7
Brazil shall endeavour to ensure that exports of all                                  Article 12
textile products for which quantitative limits are
shown in Annex I are spaced out as evenly as                   1 . This Agreement shall enter into force on the first
possible over each calendar year, due account being            day of the month following the date on which the
taken, in particular, of seasonal factors.                     Parties have notified each other of the completion
                                                               of the procedures necessary for the purpose. It shall
                                                               remain in force until 31 December 1977.
                        Article 8
                                                              2. This       Agreement    shall   have   effect     from
The Parties shall exchange all useful information              1 January 1976.
concerning their mutual trade in textiles in order
to ensure the successful implementation of this               3 . Either Party may at any time propose
Agreement.                                                     modifications to this Agreement or denounce it
                                                               provided that notice is given at least 120 days before
                                                               the expiry of any 12-month period ; in the latter event
                        Article 9
                                                               the Agreement will come to an end at the expiry
                                                               of the said 12-month period.
The quantitative limits shown in Annex I shall be
administered under a system of double checking, the           4. The Annexes to this Agreement shall form an
details of which are set out in Annex II to this
                                                               integral part thereof.
Agreement.
                                                                                      Article 13
                        Article 10
                                                              This Agreement shall be drawn up in two copies in
1 . The Parties shall take all possible measures to           the Danish, Dutch, English, French, German, Italian
ensure that traditional channels and methods of trade          and Portuguese languages, each of these texts being
between them are maintained .                                  equally authentic.
 ---pagebreak--- 18 . 2. 77                         Official Journal of the European Communities                               No L 47/5
                                                           ANNEX I
           Products for which Brazil will exercise restraint towards the whole Community from the entry
                                                into force of this Agreement
           The Community hereby notifies Brazil that the quantitative limits for the textile products listed
           below will be allocated between the Member States as follows :
                                                                                      Quantitative limits
              Cate­
                                                                       Community           (tonnes)
              gory             Product category or subcategory           region
               No
                                                                                    1976              1977
                1         55.05                                          D         11 175            11 552
                                                                         F          2 830             3 370
                          Cotton yarn
                                                                         I          3 839             4 162
                                                                         BNL        6 732             6 766
                                                                         UK           452               678
                                                                         IRL        1 113             1 119
                                                                         DK           359               443
                                                                         EEC       26 500            28 090
                2         ex 55.09                                       D          6 700             6 786
                                                                         F          1 396             1 518
                          Woven fabrics of cotton ,
                          unbleached and bleached                        I          3 337             3 381
                                                                         BNL        2 396             2 428
                                                                         UK           830                977
                                                                         IRL          200               203
                                                                         DK           141                157
                                                                         EEC       15 000            15 450
                3         ex 55.09                                       D            618                682
                                                                         F            225                260
                          Woven fabrics of cotton , other
                          than unbleached and bleached                   I            510                523
                                                                         BNL          553                556
                                                                         UK           364                411
                                                                         IRL          500                503
                                                                         DK             80                 86
                                                                         EEC        2 850             3 021
                4         ex 62.02                                       D          3 900             3 920
                                                                         F            360                432
                          Bed linen , table linen , toilet linen
                          and kitchen linen of cotton                    I            340                406
                                                                         BNL          400                464
                                                                         UK           740                860
                                                                         IRL          110                111
                                                                         DK           150                 167
                                                                         EEC        6 000             6 360
 ---pagebreak--- No L 47/6                           Official Journal of the European Communities                                18 . 2. 77
                                                      ANNEX 11
          As agreed between the Parties in Article 9 of the Agreement, the administration of textile
          imports from Brazil will be based on a system of double checking. The details of this system
          have been agreed between the Parties and are set out below.
          The competent authorities within the Community will, automatically and without delay, accept
          imports of textile products on submission of the importer's application together with the ori­
          ginal export certificate. The competent authorities within the Community shall be entitled to
          require the presentation of an export certificate in respect of goods originating in Brazil of the
          categories shown in Annex I.
          These export certificates will be validated by the Brazilian authorities up to the total amount
          of the agreed ceilings.
          The export certificates issued by the Brazilian authorities shall be applicable to the products
          shown in Annex I.
          The export certificate must specify or contain :
          1 . destination within the Community,
          2. serial number,
          3 . importer's name and address,
          4. exporter's name and address,
          5. net weight (in kilograms or tonnes) and value,
          6. category and description of product,
          7. certification by the Brazilian authorities that the quantity has been debited against the
              agreed ceiling for exports to the Community or, where appropriate, is for immediate re­
              export or for inward processing and subsequent re-export outside the Community.
          The competent authorities within the Community will not raise difficulties in the event of a
          discrepancy between the weight indicated in the export certificate and the shipment or import
          weight provided it is within reasonable limits, while the Brazilian authorities, for their part, will
          endeavour to keep any discrepancies to a minimum.
          In the event of total or partial withdrawal of an export certificate the Brazilian authorities will
          notify the competent authorities within the Community of such total or partial withdrawal. The
          authorities of the Member States of the Community will take the appropriate measures in
          accordance with their existing administrative provisions.
          The Brazilian authorities will forward to the competent authorities within the Community, via
          the Representations of the Member States of the Community and directly to the Commission,
          quartely returns showing the total net weight in tonnes covered by the export certificates
          issued against the quantitative limits for exports to the Member States of the Community, for
          all categories of textile exports to the Community to which this Agreement applies.
          The Community will forward to the authorities of Brazil, on a quarterly basis, precise statistical
          information of imports of such products into the Community.