CELEX: 51976PC0431
Language: en
Date: 1976-07-29 00:00:00
Title: Proposal for a COUNCIL REGULATION concluding the Agreement between the European Economic Community and the Federal Republic of Brazil on trade in textiles products (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 431
Vol. 1976/0129
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                           COM(76)431 final.
                                           Brussels , 29 July 1976 .
                                                               I
  1
                 •'                    \
                            Proposal for a
                          COUNCIL REGULATION
                 concluding the Agreement between the
                      European Economic Community
                               and the
                      Federal Republic of Brazil
                    on trade m textiles products
           ( submitted to the Council Toy the Commission)
 COM (76) 431 final .
 ---pagebreak---                       EXPLANATORY STATEMENT
 1.       On 18 March 1975 » "the Council decided to authorise the
 Commission to open negotiations with the Federal Republic of Brazil
 for the conclusion of an Agreement on trade in textile products .
 2.       In conformity with this Council Decision and in consultation with the
Art . 113 Committee , the Commission negotiated with representatives
 of the Brazilian government during October and December 1975 an<l
 January, February and March 197 6 . Following these negotiations
 a draft Agreement was drawn up and initialled by the heads of
 delegation on 1 April 1976 .
 3.       In particular, the draft Agreement provides restraint levels
 for Brazilian exports of certain defined textiles products to the Community
 and a checking system to be operated by Community authorities on imports
 of such products . The Community measures relating to the checking
 system for the products in question were laid down in Commission
                                                (1)
 Regulation (EEC ) No . 790/ 76 of 6 April 1976 , subsequently confirmed
 in Council Regulation (EEC ) NO . 1169/76 of 17 May 1976 ( 2 ).
 4.       The Agreement further provides that , for the products covered
 by the Agreement , the Community shall suspend all quantitative restrictions
 existing in the Community and refrain from invoking the provisions of
 Article 3 of the M.F.A. So far as quantitative restrictions on products
 other than those covered by the Agreement cire concerned , the Agreement
 provides that , unless justified under the provisions of the GATT or
 included in agreements negotiated or measures adopted pursuant to
Article 3 of the Geneva Arrangement- these shall be suspended at the
 latest by 31 March 1977 *
 5»      With the exception of cotton grey cloth , imports of the textile
products oovered by the Agreement into the Community for immediate
re–export or for re–export after processing, are not subject to the
quantitative limits established under the Agreement .
 OJ No . L 92 of 7.4.1976
 OJ No . L 131 of 20.5.1976
 ---pagebreak--- 6.     A general consultation procedure , which may be invoked "by
either party , is set out ir Article 4 of the Agreement .  It may "be used to
seek solutions to any problems arising between the parties as to the
application of the Agreement .
7.     Possibilities for carry-over , carry–forward and inter–category
flexibility are provided in the Agreement , in accordance with the
requirements of the Geneva Arrangement .
8.     The Agreement is to enter into force , upon conclusion , with
effect fx*om 1 January 1976 . It will remain in force until 31 December 1977
9.     In the Commission's opinion , the Agreement negotiated is
fully in conformity with the guidelines laid down by the Council
of Ministers and the Commission therefore proposes that the
Council adopt the draft Regulation annexed hereto ,
concluding . the Agreement on behalf of the fiommimi ty.
 V
   Vc
     \
\ \
 ---pagebreak---                            COUNCIL REGULATION ( EEC ) No .
          concluding the Agreement between the European Economic Community and
          the Federal Republic of Brazil on trade in textiles products
THE COUNCIL OF 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 the Agreement on trade in textile products negotiated between the
 European Economic Community and the Federal Republic of Brazil should be
 concluded ,
 HAS ADOPTED THIS REGULATION :
                               Article 1
The Agreement between the European Economic Community and the Federal
Republic of Brazil on trade in textile products is hereby ooncluded on
behalf of the Community.
The text of the Agreement is annexed to this Regulation .
                                                           I
                              Article 2
The President of the Council shall notify the other Contracting Party of the
completion by th9 Comiauriity of the proc&dures required for the entry into
force of the Agreement ( l )»
( l ) The date of entry into force of the Agreement will be published in the
Official Journal of the European Communities .
 ---pagebreak---                        Article 3
This Regulation shall enter into force on the third day following
its publication 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                                     Por the Council
                                             The President
 ---pagebreak---                             Draft
The Council of the European Communities
                            of the one part ,
The Government of the Federal 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 re­
 ferred to as " the Community ") and Brazil ,
 Having regard to the provisions of the Arrangement regarding Inter­
 national Trade in Textiles ( hereinafter referred to as " the Geneva
 Arrangement ") and in particular Article k' thereof ,
 Have decided , in a spirit of mutual co-operation and in conforr.ity
 with the Geneva Arrangement , to conclude this Agreement and to this
 have designated as their Plehipotentiairi es :
     COUNCIL OF THE EUROPEAN COMMUNITIES
 THE GOVERNMENT OF THE FEDERAL REPUBLIC OF BRAZIL
 VKG HAVE AGREED AS FOLLOWS :
Φ1 '
 ---pagebreak---                       Article 1
     The Parties recognise and confirm that , subject to the
provisions of this Agreement and without prejudice to their
rights and obligations under the General Agreement on Tariffs
and Trade , the conduct of their mutual trade in textiles shall
be governed by the provisions of the Geneva Arrangement .
  !
 ---pagebreak---                              Article 2
!•      In respect of those categories of textiles products which are set
out in Ar.nex I , being textiles products originating in and despatched
frcn Brazil , and subject to the satisfactory operation of this Agreement ,
the Community shall not introduce new quantitative restrictions , shall
Euspcna the operation of any previously in force , and shall refrain from
invoking the provisions of Article 3 of the Geneva Arrangement , provided
th-.t exports to the Community of such textiles products originatir; <- in
ar.d despatched from Brazil do not exceed the agreed quantitative limits#
2,      The' Government of Brazil shall establish quantitative limits on
exports to the Community in accordance with Annex I , and undertakes to
tike the appropriate measures to ensure that the quantitative limits shown
therein are not exceeded *
3o      The Community shall not object to the aforementioned quantitative
lir.its "being exceeded in the event of additional demand developing cn
the market of the Community, on the understanding that the additional
cru^ntities shall "be fixed "by common agreement "between "both Parties .
         Quantities of the quota shares set out in Annex I not taken up
"by a Kerr/ter State of the Community may "be re-allocated to another Ke~ber
Z     a in accordance with the pi^ocedures in force in the Community. The
Corjrjr.ity undertakes to respond within 4 weeks of its receipt to ar.y
reruest made by the Brazilian Government for such re-allocation » It is
xir.dsrstood that any re–allocation so effected would not need to be ccn-
fir.od within any limits set in flexibility provisions established else-
wrere in this Agreement «
5«      All other quantitative restrictions which have been notified by
the Community to the Textiles Surveillance Body under Article 2 ( l ) of
the Ger.eva Arrangement , shall , unless justified under the provisions of
GAT! or included in agreements negotiated or measures adopted pursuant
to the provisions of Article 3 of the Geneva Arrangement , be ev v.pended
as coon as possible after the conclusion of the Agreeir ?nt and in any case
by 31 Karch 1977#
c•      The Parties shall co-operate in implementing the measures necessary
for the purpose of this Article *
 \\ \                                                                 /JU,
 ---pagebreak---                           Article 3
1.     #ith the exception of Category Nc . . 2 ( cotton cloth , unbleached
or bleached ), imports into the Community of the textile products sho>m
in hnnex I wiiich are for immediate rs-exncrt or for inv/ard processing
and subsequent re-export outside the Community shall rot be subject
to quantitative limits established under this Agreement , pro vided they
are entered as such under an administrative system of control in force
for this purpose within the Community «
2.    In any case where the competent authorities within the Community
a-cortain that imports described m paragraph 1 above have been retai­
ned for consumption within the Community , the latter will notify the
Government of Brazil  on a quarterly basis of the amounts involved .
Brazil shall in such  cases and at the request of the Community , charre
such amounts against  the quantitative limit or limits in question for
the current calendar  year or for the next following year-
3-    In any case where the competent authorities within the Community
ascertain under an administrative system of control in force that
imports of textiles products shown in Annex I have been charged against
quantitative limits established therein but subsequently re-exported
outside the Community , the competent authority concerned will inform
the Brazilian authorities on a quarterly basis of the quantities which
shall not be charged to the quantitative limits .
 ψ
 ---pagebreak---                           Article 4
1*     The Parties shall enter promptly into consultations with each other ,
at the request of either and in conformity with the provisions of the
Geneva Arrangement , on any problems arising from the application of this
Agreement# Consultations held voider the provisions of this Article   shall
"be approached "by both Parties in a spirit of compromise and with a view to
the conciliation of differences existing between them#
 2#    The Parties shall consult as soon as possible within 30 days following
 the request and will make their best efforts to complete such consultations
within 30 days of their commencement#
 3.    In the event that the Parties are unable , within a reasonable period
 of tine , to reach a satisfactory 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 choosing to adopt such a course of action   shall
 notify the other of its intention#
 ---pagebreak---                              Art icle 5
       If , having regard to the provisions of the Geneva Arrangement , eitb
Party considers that it is being placed in an inequitable position in
respect of trade in textiles as compared with a third country , that Party
v.zy seek consultations with the other with a view to talcing appropriate
remedial action#
                                                                  Au.,
 ---pagebreak---                            Artide 6
1#      Portions of any quantitative limit shown in Annex I which are r.ot
used during any calendar year may "be carried over and added to the corres­
ponding quantitative limit in the following year , within a limit of lCf!
of the latter#
2«      V7ithin a limit of lOfo of each of the quantitative limits shown in
Annex I', advance deliveries shall "be authorised from the corresponding
quantitative limit established for the following year . Amounts delivered
in advance shall be deducted from the quantitaiva limits for the products
in rrucstien for the following year .
3#      Within any one calendar year, unused portions of quantitative lir.its
shov.T. in Annex I in respect of any region of the Community market may be
transferred to another quantitative limit established for that same region
cf the Community market within a ceiling of ,7$ of the recipient quantita­
tive limit#
        The preceding flexibility provisions shall not , in any given year ,
re cult in a quantitative limit for any category being exceeded by izore then
15f: of the quantitative limit for that category for that year#
••      The flexibility provisions contained in this Article may only "be ap­
plied by Brazil following written notification to the Community by the
Brazilian authorities#
 ---pagebreak---                             Article 7
       Brazil shall endeavour to ensure that exports of all textiles
roducts for which quantitative limits are shown in Annex I are spaced
ut as evenly as possible over each calendar year , due account being
a1<en , in particular , of seasonal factors#
                                                               W t4. N
  I
 ---pagebreak---                                Article 8
           The Parties shall exchange all useful information concerning
■t 'r. Fir mutual trade in textiles in order to ensure the euccecEful
icple-entation of this Agreement *
   Λ
                                         »
 ---pagebreak---                         Article 9
       The quantitative limits shown in Annex I shall be adminis­
tered under a system of double control , the details of which are
set but in Annex II to this Agreement .
\\
 ---pagebreak---                          Article 10
1.      The Parties shall take all possible measures to ensure
that traditional channels and methods of trade between them
are n^aintained .
2.      Should either Party inform the other that the application
of this Agreement has given rise to difficulties regarding the
maintenance of existing commercial relations between importers
in the Community and their suppliers in Brazil , the Parties will
consult together in accordance with the procedures set out in
Article    above .
   \                                    •               Å l*~ s
                                                          r
 ---pagebreak---                             Article 11
       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 the
territory of the . Federal Republic of Brazil .
 , I                                                  4     .
 ---pagebreak---                           Article 12
1.      This Agreement shall enter into force on the first day of
the month following the date on which the Parties have notified
each other of the completion of the procedures necessary for the
purpose . It shall remain in force until 31 December 1977 *
2e      This Agreement shall 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 tQ an end at the expiry of
the said twelve-month period .
k,      Tne Annexes to this Agreement shall form an integral part
tl-»reof .
   , ι
4
 ---pagebreak---                            Article 13
        This Agreement shall be drawn up in two copies in the
Danish , Dutch , English , French , German , Italian and Portuguese
languages , each of these texts being equally authentic *
 ---pagebreak---            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 :
                                                                                                  I
              I
                                                 Member i
                                                           Quantitative limits ( metric tons ) :
              I
              I         Product category
    C ^ J
  ::«- s«r              or sub- category         State 1        19 7 6           1 9 7 7         I
                                                         I
      1             55.05                         FRG            11 . 175         11.552
!                                                 F               2.830            3.370
                    Cotton yarn ,                 I               3.839            4.162
                                                  BNL             6.732            6.7C6
                                                  UK                  452            678
i
I
          ■ I I '                                 Irl
                                                  DK
                                                                  1.113
                                                                      359
                                                                                   1.119
                                                                                     443
                                                  EEC            26.500           23.090
                                               1
      2          ex 55.09                      j FRG              6.700            6.786
                    Vioven fabrics of cotton .
                                                  F               1.396            1.51$
                    unbleached and bleached
                                                  T
                                                  J.              3.337            3.3Ô1         '
                                                  BNL             2.396            2.423
                                                  UK                  830            977
                                                  Irl                 200            203
                                                  DK                  141            157
                                                                          i
                                                  EEC            15.000           15.450
               J                                                          i
      3          ex 55.09                         FRG                 618 I          632
              I     Woven fabrics of cotton ,
                                                  F                   225            2t,0
              ι                                   I                   510            523
                    other than unbleached
                    and bleached
                                                  BNL                 553            556
                                                  UK                  364            411
                                                                                     t: r . 1
             I                                    Irl                 500
                                                  DK                   80            ^66       !I
                                                  EEC             2.850            3.021        j
                                                                                                i
      *             62.02                         FRG             3.900            3.920
              i
              I
                                                  F                   360            432       !
                    Bed linen , table linen ,
                    toilet linen and
                                                  I                   340            406       ;
                                                  BNL                 400            464
                    kitchen linen of cotton
                                                  UK                  740            660
                                                  Irl                 110            111
                                                  DK                  150            167
                                                  EEC             6.000            6.360
 ---pagebreak---                                                                  ANNEX II
As agreed between the Parties in Article 9 of the Agreement , the ad­
ministration of textiles imports from BRAZIL will be based on a systec
of double checking . The details of this system have been agreed between
the Parties and are set out below .
                                                  will
The competent authorities within the Community fautoraatically and without
delay , Accept imports of textile products on submission of the importer' s
application together with the original export certificate . The competent
authorities within the Community shall be entitled to require the pre­
sentation of an export certificate in respect of goods originating in
35AZIL of the categories shown in Annex I.
These exoort certificates will be validated by the Brazilian authorities
uo to the total amount of the agreed ceilings .
                                                         i
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 . sériai number ;
    Z * importer 's name and address ;
    k , exporter 's name and address ;
    fr . net. weight ( in kilograms or metric tons ) 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 .
                                                                          • « •/ • • «
 ---pagebreak---                                                                         r:::zv n
                                  2 -
 i he competent authorities within the Community will not raise diffi­
 culties 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 amy discrepancies to a n.iniiran .
 In the evcr.t 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 T'smbcr States of the Community will take the appropriate aeasures
 in accordance with their existing administrative provisions .
The Brazilian authorities will forward to the competent authorities
•.sithin the Community , via the Representations of the Member litates of
the Corr^unity and directly to the Commission , quarterly returns cho
the total net weight in metric tons covered by the export certificates
issued against the quantitative limits for exports to the Ilember States
of the Conniunity , for all categories of textiles exports to the Cornnur.ity
to which this Agreement applies .
Che Cc:;jr,unity will forward to the authorities of Brazil , on a ruartcrly
basis , precise statistical information of imports of such products into
the Corjninity .
Γ
     1