CELEX: 51987PC0267
Language: en
Date: 1987-06-10
Title: Proposal for a COUNCIL DECISION concerning the provisional application of the agreed minute modifying the agreement between the European Economic Community and the Kingdom of Thailand on trade in textile products (submitted by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 267
Vol. 1987/0165
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(87 ) 267 final
                                              Brussels , 10 June 1987
                                  Proposai for a
                                 COUNCIL DECISION
          concerning the provisional application of the agreed minute
       modifying the agreement between the European Economic Community
           and the Kingdom of Thailand on trade in textile products
                         ( submitted by the Commission )
  C0MC87 ) 267 final
 ---pagebreak---                             PROPOSAL FOR A COUNCIL DECISION
                    CONCERNING THE PROVISIONAL APPLICATION OF
                 AN AGREED MINUTE MODIFYING THE AGREEMENT BETWEEN
                   THE EUROPEAN ECONOMIC COMMUNITY AND THE KINGDOM OF THAILAND
                          ON TRADE IN TEXTILES PRODUCTS
Consultations between the Community and Thailand were held on 10 April
1987 during which it was agreed to correct , in the light of recent import
developments and as provided for in the agreement on trade in textile
products , the quantitative adjustment of a quota agreed upon during the
renegotiation of the said agreement to allow for classification changes in
view of the introduction of the Harmonised System .
In the present document the Commission sets out the justification for this
correction and proposes that the Council adopt a decision on the
provisional application of the modification of the bilateral trade
agreement with Thailand .
                                   *          *
                                        *
Introduction
1 . During the renegotiation of the MFA bilateral textile trade agreements
    certain quantitative limits were adjusted to allow for classification
    changes carried out by the Community in the light of the introduction of
    the Harmonised System . Thus in the Agreement with Thailand an amount
    equivalent to 123 tonnes was added to the quota for category 4 products
    ( T-Shirts ) in order to allow for the inclusion of several Nimexe Codes
    transferred from ex category 83 .   This adjustment was determined on the
    basis of imports in the last three years for which data was
    available ( 1983-1985 ). In view of the fact that import statistics for
    1986 were not available when the Agreement was initialled on 28 June
    1986 , an Agreed Minute , forming part of the Agreement , was drawn up in
    which the Community stated that should the adjustment for any of the
    categories concerned need to be corrected , particularly in the light of
    the recent development of trade up to 31 December 1986 , it does not
    preclude the possibility of re-examining the matter . The bilateral
    agreement has been provisionally applied since 1 January 1987 in
    accordance with the Council Decision of 11 December 1986 .
 ---pagebreak--- Recent Developments in trade
2 . In 1986 imports covered by the Nimexe Codes transferred to category 4
    ( 61.05-86 , 87 , 88 and 89 ) almost doubled in comparison with imports in
    1985 ( 673 tonnes in 1986 as against 347 tonnes in 1985 ).    This means
    that the adjustment to the category 4 quota of + 123 tonnes agreed in
    1986 is clearly insufficient . Category 83 , from which the Nimexe Codes
    in question were transferred was not subject to any restraint prior to
    the reclassification of the Nimexe Codes ( except for a regional
    limitation for the UK ) .    The reclassification therefore had the effect
    of bringing under limitation products which had not previously been
    under restraint .
Outcome of Consultations with Thailand
3 . Thailand requested urgent consultations to examine the matter as soon as
    the 1986 situation became clear , invoking the Agreed Minute referred to
    in paragraph 1 . The consultations were held on 10 April 1987 .
4 . The Commission , with the assistance of the Article 113 Committee , was
    able to reach agreement with Thailand on an appropriate correction to
    the adjustment for category 4 negotiated in 1986 . An adjustment of 620
    tonnes for 1987 was agreed . It was also agreed that this quantity
    should be reserved exclusively for the Nimexe Codes transferred from ex
    category 83 .    The annual growth rate of this special quantity would be
    5% , as for overall category 4 quota .
    The 1987 quota for the main part of category 4 , as defined in 1986 ,
    which is expressed in pieces , should be adjusted to a level equivalent
    to the 1986 quota plus the annual growth of 5% provided for in the
    Agreement .
    An Agreed Minute setting out the above modif ications to the bilateral
    agreement was initialled on 10 April 1987 ( see Annex ).
Conclusions
In the light of the circumstances outlined above the Commission proposes to
the Council to decide the provisional application of the Agreed Minute
initialled on 10 April 1987 , modifying the bilateral agreement between the
Community and Thailand on trade in textile products initialled on 28 June
1986 , pending formal conclusion of the Agreement and of this Agreed Minute .
 ---pagebreak---                         PROPOSAL FOR A COUNCIL DECISION
   CONCERNING THE PROVISIONAL APPLICATION OF THE AGREED MINUTE MODIFYING
            THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
                   AND THE KINGDOM OF THAILAND ON TRADE IN TEXTILE
                                    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 proposal from the Commission ;
Whereas  the Commission has , on behalf of the European Economic Community ,
negotiated an Agreement with the Kingdom of Thailand on trade in textiles ;
Whereas  this Agreement has been provisionally applied since 1 January 1987
pending the completion of the procedures necessary for its conclusion , in
accordance with the Council Decision of 11 December 1986 ;
Whereas the said Agreement provides for the possibility of re-examining ,
in the light of recent trade developments , quantitative adjustments to the
quotas for certain categories , carried out to allow for classification
changes with a view to the introduction of the Harmonised System ;
Whereas in the course of consultations between the European Economic
Community and Thailand on 10 April 1987 the Commission        therefore
negotiated an Agreed Minute modifying the quota on category 4 products
provided for in the Agreement;
Whereas  the Agreed Minute should be applied provisionally , with effect
from 1 January 1987 , pending the completion of the procedures necessary for
the conclusion of the Agreement and this Agreed Minute , provided that there
is a reciprocal provisional application on the part of Thailand ,
HAS DECIDED AS FOLLOWS :
                                   Article 1
The Agreed Minute modifying the Agreement on trade in textile products
between the European Economic Community and the Kingdom of Thailand sha 1 1 be
applied provisionally , with effect from 1 January 1987 , pending its formal
conclusion , provided that there is reciprocal provisional application on
the part of Thailand .
The text of the Agreed Minute is annexed to this decision .
                                   Article 2
The Commission is invited to inform Thailand of this decision and to seek its
agreement theretp which should be duly communicated to the Council .
Done at Brussels ,
                                                    For the Council
                                                     The President
 ---pagebreak---                                    ANNEX
                                AGREED MINUTE
In the course of consultations between the European Economic Community and
the Kingdom of Thailand, held in Brussels on 10 April 1987 , in order to
examine the possibility of correcting the quantitative adjustment for
category 4 agreed during the negotiation of the bilateral Agreement on trade
in textiles initialled on 28 June 1986 to allow for classification changes in
view of the introduction of the Harmonised System , the two parties agreed to
modify the above Agreement as follows :
In Annex II Category 4 is modified as follows :
1 . Special quantities are established in addition     to the existing quantitative
     limits   as indicated below :
               Tonnes
                EEC
     1987       620
     1988       651
     1989       684
     1990       718
     1991       754
     These special quantities will be used for exports of products covered by
     1987 NIMEXE CODES 60.05-86,87 , 88 and 89 only .
     From the entry into force of the Community nomenclatures based on the
     Harmonised System , these special quantities will be used for export of
     products covered by Harmonised System Codes 61.05-10 , 20 , 90 only .
     For administrative control purposes the Thai export licence will show
     Category 4 ( S ) as the pertinent category in respect of the products to
     be exported under these special quantities .
 2 . The   quantitative limits for category 4 set out in    Annex II of the
     above Agreement are modified as follows :
                      1 . 000 pièces
                          EEC
     1987             10,644
     1988             11,176
     1989             11,735
     1990             12,322
     1991             12,938
 ---pagebreak---     These quantities will   be used for export of products covered by 1987 Nimexe
    From the entry into force of the Community nomenclatures based on the
    Harmonised System , these quantities will be used for export of products
     covered by Harmonised System Codes 61 05.10 , 20 , 90 ; 61 09.10, 90 and
    ex 61 10.20, ex 30 only . It is understood that there will be no transfer
    between these products and the products mentioned under point 1 above .
3 . The provisions of the Agreed Minute shall enter into force on the first
    day of the month following the date of its signature . They shall apply
    with effect from 1 January 1987 .
    Head of Delegation of the                   Head of Delegation of the
      Kingdom of Thailand                      European Economic Community