GENERAL AGREEMENT ON TARIFFS AND TRADE

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GENERAL AGREEMENT ON TARIFFS AND TRADE Textiles Surveillance Body RESTRICTED COM.TEX/SB/1208 19 January 1987 Special Distribution ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES Notification under Article 4:4 Additional Protocol to the Bilateral Agreement between the EEC and Mexico The Textiles Surveillance Body received a notification from 'he EEC of an Additional Protocol to its agreement with Mexico. This Protocol was concluded consequent on the accession of Spain and Portugal to the EEC. The Protocol was effective from 1 January 1986 and valid until 31 December 1986. The TIB, pursuant to its procedures regarding notifications made under Article 4, has examined the relevant documentation and is forwarding the 3 text of the notification to participating countries for their information. IThe bilateral agreement is contained in COM.TEX/SB/909. 2See COM.TEX/SBi35, Annex B. 3For the TSB observations see COM.TEX/SB/1226. * English only/anglais seulement/ingles solamente 87-0045

Page 2 ADDITIONAL PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE UNITED MEXICAN STATES ON TRADE IN TEXTILE PRODUCTS CONSEQUENT ON THE ACCESSION OF THE KINGDOM OF SPAIN AND THE PORTUGUESE REPUBLIC TO THE COMMUNITY THE COUNCIL OF THE EUROPEAN COMMUNITIES of the one part and THE GOVERNMENT OF THE UNITED MEXICAN of the other part, STATES CONSIDERING the accession of the Kingdom of Spain and the Portuguese Republic to the European Communities on 1 January 1986, HAVING REGARD to the Agreement between the European Economic Community and the United Mexican States on trade in textile products initialled on 21 October 1982 and, hereinafter referred to as the 'Agreement', HAVE DECIDED to determine by common accord the adjustments and transitional measures of the Agreement consequent on the accession of the Kingdom of Spain and the Portuguese Republic to the European Economic Community, and TO CONCLUDE THIS PROTOCOL:

Article 1 Page 3 The text of the Agreement as hereby amended, including. its annexes and protocols, forming an integral part thereof, shall be drawn up in Spanish and Portuguese and those texts shall be authentic in the same way as the original texts. Article 2 The Agreement shall be amended as follows : 1. The limits set out in Annex II shall be increased to the quantities set out in the Annex hereto. 2. The following paragraph is inserted into Article 8 "2 A. For the purpose of applying the provisions of paragraph 2 in the year 1986, the preceding year's total imports from all third countries shall be calculated on the basis of imports into the Community as constituted on 31 December 1985 and of imports into Spain and Portugal. Trade between the Community, Spain and Portugal, or between Spain and Portugal shall be excluded from this total." 3. Protocol C shall be replaced by the following: "Under Article 8 (6) of the Agreement, a quantitative limit may be fixed on a regional basis where imports of a given product into any region of the Cormunity in relation to the amounts determined in accordance with paragraph 2 and 2 A of the said Article 8 exceed the following regional percentage Germany 28.5 % Benelux 10.5 % France 18.5 % Italy 15 % Denmnark 3 % Ireland 1 % United Kingdom 23.5 % Greece 2 % Spain 7.5 % Portugal 1.5 %

Page 4 4. The following paragraph is added to Article 8 "12. In 19B6, for purposes of introducing Community quantitative limits or quantitative limits for regions of the Community other than Spain or Portugal, should the figures calculated on the basis of Article 8 (2A) be unavailable, or should those figures be lower than those resulting from the rules in force prior to enlargement, the latter will exceptionally continue to be used. For purposes of introducing regional limits for Spain and Portugal, should the import figures for the year 1985 be unavailable, the import total shall be established by the means set out in paragraph 2 A but on the basis of 1984 import figures. Article 3 The annex to this Protocol.forms an integral part thereof. This Protocol forms an integral part of the Agreement. Article 4 1. this Protocol shall enter into force on the first day of the month following the sate on which the contracting parties notify each other that the procedures necessary to this end have been completed. 2. It shall be applicable with effect from 1 January 1986 and remain in force during the period of validity of the Agreement between the European Economic Community and the United Mexican States on trade in textile products. Article 5 This Protocol is drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese and Spanish languages each of those texts being equally authentic.

Page 5 ANNEX Category Description Unit Community quantitative limit 1986 Cotton yarns, retail sale not put up for Tonnes 5391

Page 6 AGREED MINUTE In the context of the Additional Protocol initialled on 7 August 1986, the European Economic Community and the United Mexican States agree that if, during the course of 1986 it becomes apparent that the quota shares for Spain and PortugaL are giving rise to particular difficulties, the Community undertakes to give sympathetic consideration to any request made by Mexico for reallocatiorn under Article 15 of the Agreement. Delegation of the Uni PMe a states Delegation of the European Economic Community