CELEX: 51989PC0220
Language: en
Date: 1989-06-02
Title: Proposal for a COUNCIL DECISION concerning the provisional application of the Agreed Minute modifying the Agreement between the European Economic Community and Hong Kong on trade in textile products (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (89) 220
Vol. 1989/0075
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(89 ) 220 final
                                              Brussels , 2 June 1989
                           Proposai for a
                         COUNCIL DECISION
   concerning the provisional application of the Agreed Minute
      modifying the Agreement between the European Economic
      Community and Hong Kong on trade in textile products
                   (presented by the Commission )
 ---pagebreak--- Explanatory Memorandum
1.   The attached draft proposal for a Council Decision concerns the
     adjustment of the quota for category 10 as agreed with Hong Kong
     during negotiations for the bilateral textile Agreement , following
     the introduction of the Harmonized System .
2.   The document proposes that the above-mentioned amendment to the
     bilateral Agreement with Hong Kong on trade in textile products
     be applied provisionally from 1 January 1988 .
3.   The amendment is set out in the Agreed Minute initialled on
     14 April 1988 at the end of consultations with Hong Kong on this
     matter .
     It consists of an increase in the quota for category 10 by an amount
     negotiated on the basis of trade levels recorded in 1987 for the products
     now covered by that category as a result of the introduction of the
     Harmonized System .
4.   The Council is invited to settle the matter at its next meeting .
 ---pagebreak---                                 Proposai for a
                               COUNCIL DECISION
        concerning the provisional application of the Agreed Minute
           modifying the Agreement between the European Economic
           Community and Hong Kong on trade in textile products
Consultations took place on 13 April 1988 between the Community and Hong Kong
at the latter 's request during which it was agreed to adjust a quota which
had been agreed when the above-mentioned Agreement was renegotiated .
In this document the Commission explains the reasons for this modification
and invites the Council to adopt a Decision provisionally applying the
amendment to the bilateral trade Agreement concluded with Hong Kong .
                                      *
1.   When the multifibre bilateral Agreements were renegotiated in 1986
     some quotas were adjusted in order to allow the Community to make
     classification changes with a view to the introduction of the
     Harmonized System .  However , some additional adjustments are now
     necessary following the introduction of the - Combined Nomenclature
     on 1 January 1988 .
2.   Since 1 January 1988 the quota for category 10 has covered certain
     products from category 67 , which is not subject to limitation .   In
     order to ensure a neutral transposition    of the CCT and Nimexe to the
     Combined Nomenclature , category 10 needs to be adjusted .
3.   At Hong Kong 's request , consultations were held in Brussels on
     13 April in order to settle the matter .
 ---pagebreak---                                  -  2 -
   With the assistance of the Member States the Commission reached
   an agreement with Hong Kong to increase the quota for category 10
   by an amount negotiated on the basis of trade Levels in 1987 .
4. An Agreed Minute containing the above-mentioned modifications to
   the bilateral Agreement was initialled on 14 April 1988 ( see Annex ).
5. Consequently , the Commission proposes that the Council should approve
   the provisional application of the Agreed Minute initialled on
   14 April 1988 modifying the bilateral Agreement on trade in textile
   products initialled by the Community and Hong Kong on 2 October 1986 ,
   pending the formal conclusion of the Agreement and the Minute .
 ---pagebreak---                                                    Proposai for a
                                                 COUNCIL DECISION
             concerning the provisional application of the Agreed Minute modifying the Agreement between the
                          European Economic Community and Hong Kong on trade in textile products
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                     HAS DECIDED AS FOLLOWS :
Having regard to the Treaty establishing the European                               Article 1
Economic Community , and in particular Article 113
thereof ,                                                      Pending the completion of the procedures
                                                               necessary for its conclusion, the Agreed Minute
Having regard to the proposal from the Commission ,            modifying the Agreement on trade in textile
                                                               products between the European Economic Community
Whereas pending the completion of the procedures               and Hong Kong shall be applied provisionally in
necessary for its conclusion, the Agreement between            the Community , with effect from 1 January 1988,
the European Economic Community and Hong Kong on               provided that there is reciprocal provisional
trade in textile products , initialled on 2 October            application on the part of Hong Kong .
1986, has been provisionally applied since 1 January
1987 in accordance , for the Conmnity 's part , with           The text of the Agreed Minute is attached to this
the Council Decision 88/213/EEC1 ;                             Decision .
Uhereas that Agreement provides for the possibility of                                Article 2
quantitative adjustments to the quotas for certain
categories , in order to allow for classification              The Commission is invited to seek the agreement of
changes following the introduction of the Combined             the Government of Hong Kong on the provisional
Nomenclature ;                                                 application of the Agreed Minute referred to
                                                               in Article 1 and to notify the Council thereof .
Ivhereas following consultations between the Community
and Hong Kong an Agreed Minute modifying the quota             Done at Brussels ,
for category 10 products provided for in the Agreement
was initialled on 14 April 1988;                                                               For the Counci l
Uhereas pending the completion of the procedures                                              The President
necessary for the conclusion of the Agreement and
the Agreed Minute, the Agreed Minute should be
applied provisionally , with effect from 1 January
1988, provided that there is a reciprocal
provisional application on the part of Hong Kong,
  1OJ Vto L 97, 14.4.1968, p. 1 .
                                                                                                         J"
 ---pagebreak---                            AGREED MINUTE
           A delegation of the Hong Kong Government and a delegation
of the European Community met in Brussels on 13 April. 1988 for consultations
on problems arising from the transfer of rubberised knitted gloves from
Category 67 to Category 10 on the implementation of the Harmonised System *
The consultations were conducted in accordance with Article 14C3 ) of the
Agreement of Trade in Textile Products between Hong Kong and the Community
initialled on 2 October 1986 in Brussels .
2.         As a result of the consultations;' the two parties agreed to add the
following quantities to the quantitative limits for Category 10 established
 in Annex II of the said Agreement :
                                               Additional Quantity
                       Year                          '000 pairs
                       1988                         3.362
                       1989                         3.939
                       1990                          4.018
                       1991                          4 .. 093
 3.         It was further agreed that the regional shares for Category 10 for
  the year 1988 as indicatediin the Annex to the Cpmmuni ty 'r, Note Verbele
  dated 4 March 1988 will be increased in consequence of the additional : entity
  referred to in paragraph 2 above by not less than the following quantities :
                                                Addii.onel Quantity
                       Region                   _____* 000 pairs
                          D                           1.944
                          F                                268
                          I                                658
                        BNL                                181
                        UK.'.                              495
                         IRL                                13
                        DEN                                 48
                        GRE
                         SPA                               126
                         P0R
                                                                             6
 ---pagebreak---   4.     The two parties also confirmed that the sub-limits for
  the United Kingdom within the quantitative limits for Category 10
  established in Annex II of the' said Agreement will apply to gloves
  impregnated coated or covered with plastics covered by 1988 CM code
6116.10.10 and the sub-limits for these products remain as set out
  in Annex II of the Agreement .
  5.     As foreshadowed in the Agreed Minute between Hong Kong and the
  Community dated 23 March 1988, the two parties agreed that the special
  swing arrangement established under the said agreed minute will cease .
  The quantities of rubberised knitted gloves shipped under this arrange­
  ment are debited to the new quota level introduced for Category 10 for
  the year 1988 , and the quotas from which the special swing out was
  effected are recredited .
  6.     It is understood that all rubberised gloves exported from Hong
  Kong from 1 January 1988 are to be debited against Category 10 quota .
  7.     A point concerning the origin definition for the rubberised
  gloves was raised by the Community and both parties agreed to clarify
  the matter at a later date .
                                             8russels , 14 April 1988
                                             Delegation of the European
                                                 Economic Community
                                                                 9
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