               EUROPEAN COMMISSION
            Brussels, 13.9.2017
            COM(2017) 493 final
            Recommendation for a
            COUNCIL DECISION
            authorising the opening of negotiations for a Convention establishing a multilateral court for the settlement of investment disputes
            {SWD(2017) 302 final}{SWD(2017) 303 final}

               EXPLANATORY MEMORANDUM

               1.CONTEXT OF THE PROPOSAL

               •Reasons for and objectives of the proposal

                  In recent years, the inclusion of Investor-State Dispute Settlement (ISDS) in trade and investment agreements has become subject to increased public scrutiny and questioning. There are a number of problems that have been identified as stemming from ISDS, which is based on the principles of arbitration. These problems include the lack of or limited legitimacy, consistency and transparency of ISDS as well as the absence of a possibility of review.

                  To address these limitations, the Union's approach since 2015 has been to institutionalise the system for the resolution of investment disputes in EU trade and investment agreements through the inclusion of the Investment Court System (ICS). However, due to its bilateral nature, the ICS cannot fully address all the aforementioned problems. Moreover, the inclusion of ICSs in Union agreements has costs in terms of administrative complexity and budgetary impact.

                  The multilateral investment court initiative aims at setting up a framework for the resolution of international investment disputes
                     1
                   that is permanent, independent and legitimate; predictable in delivering consistent case-law; allowing for an appeal of decisions; cost-effective; transparent and efficient proceedings and allowing for third party interventions (including for example interested environmental or labour organisations). The independence of the Court should be guaranteed through stringent requirements on ethics and impartiality, non-renewable appointments, full time employment of adjudicators and independent mechanisms for appointment.

                  This initiative will only deal with procedural issues. Matters such as the applicable law or standards of interpretation, including ensuring the consistency with other international obligations (for example from International Labour Organisation and UN Conventions) will be addressed in the underlying investment agreements to be applied by the Multilateral Investment Court.

                  This initiative seeks to align the Union's policy in investment dispute resolution with the Union's approach in other areas of international governance and international dispute settlement favouring multilateral solutions. This initiative is not part of the Commission's Regulatory Fitness and Performance (REFIT) programme.

               •Consistency with existing policy provisions in the policy area

                  The May 2015 Commission concept paper "Investment in TTIP and beyond – the path for reform - Enhancing the right to regulate and moving from current ad hoc arbitration towards an Investment Court"
                     2
                   set out a two-step approach for the reform of the traditional ISDS system. The first step was the inclusion of an institutionalised court system for the resolution of investment disputes in future Union trade and investment agreements (i.e. the ICS). As a second step, the Union was to work towards the establishment of a multilateral investment court. This multilateral court would aim at replacing all the bilateral ICSs included in the Union trade and investment agreements and allow the Union, its Member States and partner countries to replace the ISDS provisions in their existing investment agreements with access to the multilateral investment court.

               •Consistency with other Union policies

                  The present Recommendation is in line with the Commission Communication "Trade for all"
                     3
                   from October 2015 which sets out that the Commission will in parallel to its bilateral efforts "engage with partners to build consensus for a fully-fledged, permanent International Investment Court".

                  In fact, at the public release on 12 November 2015 of the EU's proposed text for the Transatlantic Trade and Investment Partnership (TTIP) on investment protection and investment dispute settlement, the Commission stated that the "Commission will start work, together with other countries, on setting up a permanent International Investment Court. […] This would lead to the full replacement of the "old ISDS" mechanism with a modern, efficient, transparent and impartial system for international investment dispute resolution".
                     4

                  The Recommendation is also consistent with the May 2017 Commission Reflection Paper on Harnessing Globalisation,
                     5
                   which explicitly refers to this initiative when stating that "[international investment] [d]isputes should no longer be decided by arbitrators under the so-called investor-state dispute settlement. This is why the Commission has proposed a multilateral investment court that would create a fair and transparent mechanism".

                  In addition, on the occasion of the adoption by the Council of the decision authorising the signature of CETA, the Council stated that "the Council supports the European Commission's efforts to work towards the establishment of a multilateral investment court, which will replace the bilateral system established by CETA, once established, and according to the procedure foreseen in CETA".
                     6

               2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

               •Legal basis

                  Article 218(3) of the Treaty on the Functioning of the European Union (TFEU) provides that the Commission shall submit recommendations to the Council, which shall adopt a decision authorising the opening of negotiations and nominate the Union negotiator. According to Article 218(4) of the TFEU, the Council may address directives to the negotiator.

               •Subsidiarity (for non-exclusive competence)

                  Article 5(3) of the Treaty on European Union (TEU) provides that the subsidiarity principle does not apply to areas of exclusive EU competence.

                  The Union has partly exclusive and partly shared competence with regard to investment protection.

                  Article 3 of the TFEU provides that the Union has exclusive competence with respect to the common commercial policy. According to Article 207 of the TFEU, foreign direct investment (FDI), including the possibility to negotiate and conclude international agreements covering FDI, is part of the Union's common commercial policy.

                  In its Opinion 2/15 regarding the EU-Singapore Free Trade Agreement (EUSFTA) the Court of Justice has confirmed that the Union has, on the basis of Article 207 of the TFEU, exclusive competence over the substantive standards of protection usually included in investment agreements to the extent that such standards apply to FDI.
                     7
                   In the same opinion, the Court of Justice has clarified that, in the case of non-direct investment, the competence with regard to those substantive standards is shared by the Union and the Member States.

                  In its Opinion 2/15, the Court has further clarified that the competence with respect to ISDS (in relation to both FDI and non-direct investment) is shared between the Union and its Member States, to the extent that the Member States are required to act as respondents in certain disputes.

                  The Union is a party, together with the Member States, to agreements providing for traditional ISDS (the Energy Charter Treaty - ECT) or an ICS (the EU-Canada Comprehensive Economic and Trade Agreement - CETA) and may be required to be the respondent in disputes brought under those agreements. Moreover, the Commission is negotiating several other FTAs and stand-alone investments agreements including an ICS. It is envisaged that the Union will be the respondent in at least some of the disputes brought under those agreements

                  The participation of the Union in the envisaged Convention is thus necessary in order to bring within its scope of application those disputes under the above mentioned agreements where the Union will be the respondent.

                  The existing agreements including ISDS or ICS to which the Union is a party (the ECT and CETA) provide that the Member States shall be respondents in some cases. The envisaged agreements including ICS could likewise provide that the Member States shall be respondents in certain disputes. Moreover, the Member States have been empowered by the Union under Regulation No 1219/2012
                     8
                   to maintain or conclude almost 1400 bilateral investment treaties, which include traditional ISDS. For those reasons, the multilateral reform of investment dispute resolution envisaged by this initiative has to be subscribed by Member States in addition to the Union.

               •Proportionality

                  The present Recommendation for a Council Decision authorising the opening of negotiations for a Convention establishing a multilateral court for the settlement of investment disputes does not go beyond what is necessary to achieve the policy objectives at stake.

                  In line with the principle of proportionality, all reasonable policy options were considered in order to assess the likely effectiveness of such policy intervention. They are described in detail in the Impact Assessment Report.

               •Choice of the instrument

                  A Commission Recommendation for a Council Decision authorising the opening of negotiations is in line with Article 218(3) of the TFEU which provides that the Commission shall submit recommendations to the Council, which shall adopt a decision authorising the opening of negotiations.

               3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

               •Ex-post evaluations/fitness checks of existing legislation

                  A review of the ISDS is carried out periodically in the context of the ECT, where the Union and the Member States as Contracting Parties actively participate. Although modernisation of investment protection including dispute settlement remains a Union priority within the ECT review, the preferred vector for reform of investment dispute settlement is the multilateral reform embodied by this initiative.

                  Given its very recent introduction, no evaluation has yet been conducted on the ICS.

               •Stakeholder consultations

                  The Commission actively engaged with stakeholders and conducted a comprehensive consultation throughout the Impact Assessment process.

                  Between 21 December 2016 and 15 March 2017 the Commission carried out an online public consultation which was launched on the DG TRADE website and posted on "EU survey" (i.e. the Commission's online tool for conducting public consultations). Stakeholders were invited to answer questions including on the problems and possible policy options, technical aspects of such options and possible impacts. The consultation showed overall broad support for a multilateral reform of investment dispute settlement as described in this initiative although questions remain, especially on its technical aspects.

                  The individual responses to the public consultation were published on the consultation website. The summary report of the online public consultation, as well as of all other activities carried out by the Commission as part of the stakeholder consultation, is annexed to the Impact Assessment Report.

               •Impact assessment

                  An Impact Assessment on the multilateral reform of investment dispute settlement including the possible establishment of a multilateral investment court was conducted. The Impact Assessment Report and its Executive Summary Sheet, as well as the positive opinion of the Regulatory Scrutiny Board, are attached to this Recommendation.

                  As the multilateral investment court initiative only addresses procedural rules (i.e. dispute settlement) and not substantive rules (which are included in the underlying investment agreements), no relevant environmental or social impacts are expected to result from it.

               •Regulatory fitness and simplification

                  The multilateral investment court will alleviate the administrative burden related to investment dispute settlement by centralising all disputes under a single set of procedural rules. It will ensure investors' access to a legitimate, independent and effective system for the resolution of international investment disputes regardless of their size and/or turnover. SMEs may benefit from additional assistance to take account of their lower turnover. Proceedings under the court are expected to be shorter and therefore less costly for investors as compared to the traditional, unreformed system. Moreover, enhanced predictability and consistency of interpretation of substantive investment provisions will contribute to fewer disputes.

               •Fundamental rights

                  In line with article 21(1) of the TEU, the Union will be guided by the principles of democracy, the rule of law, human rights and fundamental freedoms as they relate to this initiative, including in particular Article 47 of the Charter of Fundamental Rights.

                  Action by the Union at multilateral level cannot compromise the level of protection of fundamental rights in the Union. The multilateral investment court is intended to create an additional remedy under international law for enforcing the obligations imposed upon States by international agreements. It is therefore without prejudice to the existing rights of foreign investors under domestic Union Law and the laws of the Member States or to the remedies for enforcing such domestic law rights.

               4.BUDGETARY IMPLICATIONS

                  The exact financial implications of this initiative are impossible to determine at this stage insofar as the key elements of the multilateral investment court remain to be multilaterally negotiated. It is considered to be less expensive than the alternative of maintaining the ICS in agreements already negotiated or subject to negotiation and the existing system. A number of calculations have been made, based on a number of assumptions, and are included in the Impact Assessment Report.

               5.OTHER ELEMENTS

               •Implementation plans and monitoring, evaluation and reporting arrangements

                  The Commission will carry out regular monitoring once the multilateral court is operational. It will also regularly audit the Union's financial contributions to the costs of the court. An evaluation of the functioning of the multilateral investment court will be undertaken when it has been in force for a sufficient period of time allowing availability of meaningful data. The attached Impact Assessment Report contains further details on the foreseen monitoring and evaluation activities.

               •Procedural aspects

                  The Commission welcomes the fact that the members of the Council of the European Union are increasingly engaging at an early stage with their parliaments on investment negotiations in line with their institutional practices. It encourages the members of the Council of the European Union to do the same with regard to this Recommendation for a Council Decision having due regard to Council Decision 2013/488/EU on the security rules for protecting EU classified information
                     9
                  .

               The Commission makes this Recommendation and its attachment public immediately after its adoption.

               The Commission recommends that the negotiating directives be made public immediately after their adoption.

               Recommendation for a

               COUNCIL DECISION

               authorising the opening of negotiations for a Convention establishing a multilateral court for the settlement of investment disputes

               THE COUNCIL OF THE EUROPEAN UNION,

               Having regard to the Treaty on the Functioning of the European Union, and in particular Article 218(3) and (4) thereof,

               Having regard to the Recommendation from the European Commission,

               WHEREAS negotiations should be opened with a view to concluding a Convention between the European Union and its Member States and other interested countries establishing a multilateral court for the settlement of investment disputes,

               HAS ADOPTED THIS DECISION:

               Article 1

               The Commission is hereby authorised to open negotiations, on behalf of the Union, for a Convention establishing a multilateral court for the settlement of investment disputes.

               Article 2

               The negotiations shall be conducted in line with the negotiating directives set out in the Annex to this Decision.

               Article 3

               This Decision and its attachment will be made public immediately after their adoption.

               Article 4

               This Decision is addressed to the Commission.

               Done at Brussels,

                     For the Council

                     The President

                     (1)
                  Disputes arising from bilateral investment treaties concluded among Member States (i.e. intra-EU BITs) and disputes between an investor of a Member State and a Member State under the Energy Charter Treaty are outside the scope of this initiative. The Commission considers this type of treaties contrary to Union law.

                     (2)
                  Available at
                  http://trade.ec.europa.eu/doclib/docs/2015/may/tradoc_153408.PDF
                  .

                     (3)
                  Available at
                  http://trade.ec.europa.eu/doclib/docs/2015/october/tradoc_153846.pdf
                  .

                     (4)
                  See
                  http://europa.eu/rapid/press-release_IP-15-6059_en.htm
                  .

                     (5)
                  Available at
                  https://ec.europa.eu/commission/sites/beta-political/files/reflection-paper-globalisation_en.pdf
                  .

                     (6)
                  Statement 36 of the Statements and Declarations entered on the occasion of the adoption by the Council of the decision authorising the signature of CETA. Brussels, 27 October 2016.

                     (7)
                  Opinion of the CJEU of 16 May 2017, C-2/15,EU:C:2017:376 pursuant to Article 218(11) TFEU on the competence of the European Union to conclude the Free Trade Agreement with Singapore.

                     (8)
                  Regulation (EU) No 1219/2012 of the European Parliament and of the Council of 12 December 2012 establishing transitional arrangements for bilateral investment agreements between Member States and third countries (OJ L 351, 20.12.2012, p.40).

                     (9)

                  http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32013D0488

    ---documentbreak---

               EUROPEAN COMMISSION
            Brussels, 13.9.2017
            COM(2017) 493 final
            ANNEX
            to the
            Recommendation for a Council Decision
            authorising the opening of negotiations for a Convention establishing a multilateral court for the settlement of investment disputes
            {SWD(2017) 302 final}{SWD(2017) 303 final}

               ATTACHMENT

               Regarding the process of the negotiations:

               1.The Union shall strive to ensure that the process of the negotiation of the Convention allows all interested countries and international organisations to effectively participate in the negotiation and consensus building.

               2.The Union shall be represented by the Commission throughout the negotiations. In accordance with the principles of sincere cooperation and of unity of external representation as laid down in the Treaties, the Union and the Member States of the Union participating in the negotiations shall fully coordinate and act accordingly throughout the negotiations.

               3.Negotiations shall be conducted under the auspices of the United Nations Commission on International Trade law (UNCITRAL). In the event of a vote, the Member States which are Members of the United Nations Commission on International Trade law shall exercise their voting rights in accordance with these directives and previously agreed EU positions.

               4.The Union shall strive to ensure that the negotiations are conducted in a transparent manner, including, where possible, through audio- and/or web-streaming, and that representatives of civil society organisations will have the opportunity to participate in the discussions as accredited observers.

               Regarding the substance of the negotiations:

               5.The Convention should allow the Union to submit disputes arising under agreements to which the Union is or will be a party to the jurisdiction of the multilateral court. Consequently, the Union should be in a position to become a Party to the Convention and the provisions of the Convention should be drafted in a way which allows their effective use by the European Union.

               6.The Convention should also allow the Member States of the Union and third countries to submit disputes arising under agreements to which they are or will be Parties to the jurisdiction of the multilateral court.
                  1

               7.The principal mechanism of the Convention should be that the jurisdiction of the multilateral court extends to a bilateral agreement when both Parties to the agreement have agreed to submit disputes arising under the agreement to the jurisdiction of the multilateral court. In the case of multilateral agreements, the Convention should allow two or more Parties to such an agreement to agree to submit disputes under the multilateral agreement to the jurisdiction of the multilateral court.

               8.The multilateral court should be composed of a tribunal of first instance and an appeal tribunal. The appeal tribunal should have the competence to review decisions issued by the tribunal of first instance on the grounds of errors of law or manifest errors in the appreciation of facts. The appeal tribunal should have the power to send back cases to the tribunal of first instance for the completion of the proceedings in light of the findings of the appeal tribunal ("remand").

               9.The independence of the Court should be guaranteed. Members of the court (both of the tribunal of first instance and of the appeal tribunal) should be subject to stringent requirements regarding their qualifications and impartiality. Rules on ethics and challenge mechanisms should be foreseen within the Convention. The members of the court should receive a permanent remuneration. They should be appointed for a fixed, long and non-renewable period of time and enjoy security of tenure, as well as all necessary guarantees of independence. Members should be appointed through an objective and transparent process.

               10.The Convention should include the necessary flexibilities to adapt to an evolving membership, as well as to possible evolutions in the nature of agreements that could be submitted to the jurisdiction of the court. The Convention should not exclude the possibility for the court to rely on the secretarial support of an existing international organisation, nor to be integrated into the structure of any such organisation at a later stage.

               11.Proceedings before the multilateral court should be conducted in a transparent manner, including the possibility of submitting third party interventions, similar to or utilising the rules and standards provided for within the UNCITRAL Rules on Transparency for treaty-based investor-state arbitration.

               12.Decisions of the multilateral court should benefit from an effective international enforcement regime.

               13.One objective of the negotiations should be that the multilateral court operates in a cost-effective way, ensuring its accessibility for small and medium-sized enterprises and natural persons. The fixed costs of the court, including costs of remuneration of its members and costs of administrative and secretarial support, should in principle be borne by the Contracting Parties to the Convention establishing the multilateral court. The distribution of such costs among the Contracting Parties should be decided on an equitable basis which may take into account factors such as the Parties' level of economic development, the number of agreements covered per Party, the Parties' respective volume of international investment flows or stocks.

               14.The Union should strive to ensure that support can be made available to ensure that developing and least developed countries can operate effectively in the investment dispute settlement regime. Such an initiative may form part of the process of establishing a multilateral investment court or may be conducted separately.

               15.The Convention establishing the multilateral court should be open for signature and accession by any interested country and regional economic integration organisation that is a party to an investment agreement. It should allow for an early entry into force as soon as a minimum number of ratification instruments have been deposited.

                     (1)
                  Disputes arising from bilateral investment treaties concluded among Member States (i.e. intra-EU BITs) and disputes between an investor of a Member State and a Member State under the Energy Charter Treaty are outside the scope of this decision.


title: RECOMMENDATION FOR A COUNCIL DECISION ON THE CONCLUSION OF A PROTOCOL ON FINANCIAL AND TECHNICAL CO-OPERATION BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SYRIAN ARAB REPUBLIC

text:
24. 1. 91                            Official Journal of the European Communities                                   No C 16/9
                                                             II
                                                     (Preparatory Acts)
                                               COMMISSION
            Recommendation for a Council Decision on the conclusion of a Protocol on financial and
            technical cooperation between the European Economic Community and the Syrian Arab
                                                          Republic
                                                    COM(90) 633 final
                                  (Submitted by the Commission on 20 December 1990)
                                                       (91/C 16/11)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                         Syrian Arab Republic is hereby approved on behalf of
                                                                 the Community.
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 238
thereof,                                                         The text of the Protocol is attached to this Decision.
Having regard     to  the   recommendation      from    the
Commission,                                                                               Article 2
Having regard     to  the   opinion   of   the   European        The President of the Council shall give the notification
Parliament,                                                      provided for in Article 21 of the Protocol (1).
Whereas the Protocol on financial and technical
cooperation    between     the    European       Economic                                 Article 3
Community and the Syrian Arab Republic should be
approved,                                                        This Decision shall enter into force on the day following
                                                                 that of its publication in the Official Journal of the
                                                                 European Communities.
HAS DECIDED AS FOLLOWS:
                        Article 1
                                                                 (l) The date of entry into force of the Protocol will be
The Protocol on financial and technical cooperation                  published in the Official Journal of the European
between the European Economic Community and the                      Communities by the General Secretariat of the Council.


RECOMMENDATION FOR A COUNCIL DECISION CONCERNING THE CONCLUSION OF THE AGREEMENT FOR SCIENTIFIC AND TECHNICAL COOPERATION BETWEEN THE EUROPEAN COMMUNITIES AND THE REPUBLIC OF FINLAND


title: RECOMMENDATION FOR A COUNCIL DECISION CONCERNING THE COMMUNITY'S POSITION WITHIN THE ORGANISATION FOR ECONOMIC COOPERATION AND DEVELOPMENT IN THE MATTER OF A LOCAL COSTS STANDARD (presented by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 2238
Vol. 1974/0379
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                     l
                                         COM(74)2238 final
                                         Brussels, 18 December 197 ^
                       RECOMMENDATION FOR A
                          COUNCIL DECISION
          CONCERNING THE COMMUNITY 'S POSITION WITHIN THE
       ORGANISATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
               IN THE MATTER OF A LOCAL COSTS STANDARD
           ( presented by the Commission to the Council )
COMm ) 2238 final
 ---pagebreak---   ΠΧΡΙ,ΛΝΔΤΟΠΥ ΡΤΪΊΟΗΛίίυΐΐΜ
           The aim of -this Recommendation is to secure tho adoption by the
 Council of a number of directives concerning the position the Community
 should adopt vithin O.KCD v;ith regard "to the framing of an agreement for
 a Local Cost standard .
           The reconunendat ion followr     - vine        an those presented by
 the Commission to tho Council re 1'' tin - 1.0        vehor agreements still
 under discussion vritbin 01T.OD concerning export credits for nuclear power
 stations and aeroplrnes , end •: he : - . ;r . n-j, - ircady concluded within
 OKCD concern in,-; credit terns for ;xouric1 sr.telli-U* commimicat ions stations ,
 for tihioh the Commission ha:; rsubmitted a proposal for a Council Decision
brincinj the matter to a conclusion .
          In this sphere , too , it appe.-rs neo9>.;o';r„ Lo -.void c'istorsion of
competition .- ml deterioration of credit term .          Thuc the Commiosion
considers that the Community should define the principles of its commercial .
policy on this subject and participate in the framinj of the agreement
within O^CD .
          7or thir-. purpose the representatives of the ilember "tat os and the
Co; unisfjion have repeatedly conferred *. rithin the Policy Coordination Group
o: Credit Insurance , Guarantees f-nd Finrnoial Credit 0 and have arrived
     '■ joint approach .     The Commission therefore eon riders it appropriate
fo • the Council to lay down certain .^uidelincc for the Community 's position
or. the basis of the conclusions reached in those consultations , and recommends,
th, t it should adopt for this purpose the Decision the draft of which is
annexed hereto .
                                         \
 ---pagebreak---                 RECOMMENDATI Oil FOR A COUNCIL DECISION
              CONCERNING THE COMMUNITY 'S POSITION WITHIN
     THE ORGANISATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
              IN THE MATTER OF A LOCAL COST STANDARD
   THE COUNCIL OF THE EUROPEAN CCM-IUITITIES ,
   Having regard to the Treaty establishing the Buroperji Economic           1
   Community , and in particular Article 113 thereof ;                    ,
  Having regard to the Recommendation for the Commission ;
. Whereas it in desirable to issue certain directives on the position to
  fce adopted by the Community within the Organisation for Economio
  Cooperation an     Development with regard to the framing of an agreement
  covering a Lor..- i Costa standard }
  HAS – .D1® AT, pr.
                             Soin Article
        In the course of nrrivin.;; at an agreement within the Organisation
  for Economic Cooperation and Development for a Local dosis standard , ihe
  Commission shall express the Community 's position in accordance v/ith the
  directives annexed .
        It shall act in - consultation with the Special Committee referred to
  in Article 113 of the Treaty which shall assist it in its task *
/                                   Done at Bruasels            * » • »
                                   For the Council
                                    The Président ' 1                       "
 ---pagebreak---                                                                       AHtJKX
         The Commission shall endeavour to achieve , within the Organisation
   for Economic Cooperation and Development , an agreement based on the'
   following principles J
  I.    SCOPE
         All officially supported contracts related to exports on supplier or
  buyer credit terms shall , save ns hereinafter provided , "be subject in
  respect of local ooBts , to the following Standard .
  Il#    THE STANDARD
   i     Not to finance or cover credit for more than 100 per cent of the
 value of the goods and services exported ( exported "goods and services"
  including goods and servicer, supplier?. by third countries ).  This means
 that the amount of local costs .supported on credit terms must not exceed
 "the payments to be received for the goods and services exported by the
 completion of the exporter 's contractual obligations ( the date of completion
being determined according to the accepted standards of the Berne Union for
the determination of starting points for credits ).
        Not to grant rapport ur.der clause 1 above for credits or credit
guarantees for local costs carrying interest rates or maturity terms more
favourable than those supported for the exports of goods and ServiceB to
which such local costs are related .
        " Local cost 3" mean expenditure for the supply of goods and services
fvom the buyer 's country .      These goods md nervices must be necessary
e_ther for performing the exporter 's contract or for completing the projeot
of which the exporter 's contraot forms part .
            «
 ---pagebreak---  III .     ΚΧΟΙΠ3ΙΟΝ ΟΡ ΟΕΚΤΑΐίί ΤΠΛΙΙΠΛΟΤΙΟΝΠ
          The Local Costs Standard shall not apply to :
   ( a) t faneact iona that aro for purely military purposes tinder contracts
          negotiated or in course of negotiation between the defence authorities
          of a participating Government rnd any other Government }
   00 transactions with developing countriod which are eligible for
        ' consideration as Official Development Aosiotaftoe ( ODA) by the
          Development Assistance Committee or v^hich , although financed
          wholly or in p-"t from other fund ,3 than ODA come under a
          participating .•••. an try 1 .v. .iid scheme .
IV *      PRnor? ;TTf ,P -, FROt' ttik
 1»       Any dero.ji).+.ion from the Locr.l Costs Standard shall take place only
in except ion.-,?, a-wec ,
P.        Any such derogation shall "be notified in accordance with the
appropriate pro^dures .
3.       Each notification shall apenify :
  (:■.) the tot ;. 1 amount of local costs ;
  ( b ) the rjmour.t of the payments to be received by tho date of completion .
         of the exporter 's contractual obligations ;
  f ' ) the value of goods and services exported ;
e. > "1 of these particulars being expressed rs a percentage of the total
V.'.j.ue of tho officially supported ror.l.-.".H.


title: Recommendation for a COUNCIL DECISION authorizing the Commission to participate on behalf of the Community in the negotiations for the renewal of the International Olive Oil Agreement (submitted to the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 61
Vol. 1979/0022
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM ( 79) 61 final
                                             Brussels ^ 22 February 1979
                          Recommendation for a
                            COUNCIL DECISION
     authorizing the Commission to participate on behalf of the
         Community in the negotiations for the renewal of the
                    International Olive Oil Agreement
             ( submitted to the Commission to the Council )
                                           ( !
                                          " X
                                  --         "     \
                                   (
                                               y
 COM ( 79) 61 final
 ---pagebreak---                          Explanatory Memorandum
    1 . The Community as such has been a provisional rhember of the International
         Olive Oil Agreement since 1 January 1978 .
    2. Since the Agreement , as last prolonged by the Protocol of 7 April 1978 ,
         expires on 31 December 1979, a United Nations Conference is to be held in
         Geneva under the auspices of UNCTAD during the period from 20 March to
         6 Aprii 1979 to negotiate a new agreement .
   3 . A Special Committee for the preparation pf the new agreement to enter into
        force on 1 January 1980 was set up under a Resolution adopted in Madrid on
        8 May 1978 on the occasion of the 38th meeting of the International Olive
        Oil Council and following the Final Resolution adopted on 7 April 1978 by
        the United Nations Conference on Olive Oil .                                ,
                                   1
   4 . The Community participated ••    in the work of the Special Committee , which
       met in Madrid from 19 to 25 October and from 11 to 13 December 1978 and
       produced a draft negotiating text . This has been forwarded by the Interna
       tional Olive Oil Council to the Director General of UNCTAD for use as the
       basis of the negotiations .
       A copy is annexed for information .
                                 Recommendation
  V The Commission recommends that the Council authorize it , pursuant to
       Article 113 of the EEC Treaty , to participate on behalf qf the Community
       in the United Nations Conference to negotiate a new International Olive
       Oi I Agreement .
     \
  2.   The Commission will conduct the negotiations in consultation with the
       committee provided for in Article 113 of the Treaty , on the basis of
       the guidelines set out in paragraph 3 below .
          \
                                                                          ./.
1
  On the basis of S / 1690/ 78
 ---pagebreak---                                                                                2.
3. ( a ) In the light of the existing market surplus situation , the expansion
            of production should cease to be an objective of the Agreement ;
  : < b ) The Community considers that the setting up of a buffer stock of
            olive oil would not resolve the problems of the existing market surplus
            situation . It therefore opposes this proposal .
    < c ) The Community proposes to participate as such in the Publicity Fund
           set up under the Agreement .
           The internal rules relating to Its financial contribution to this Fund
           will   at    the appropriate time be decided . by the Council .
                          \              - x
    ( d ) The Community supports the proposal to promote technical improvements
           in olive-growing through the introduction into the administrative bud
          get of the Olive Oil Council of a special chapter for this purpose of
          up to & 100 000, it being understood that such technical improvements
          should be directed to quality improvement and cost reduction and should
          not contribute to increased production .
   ( e ) The Community accepts the widening of the scope of the Agreement to
          include table olives , provided that additional expenditure does not
          resuit therefrom .
   ( f ) Questions of a technical administrative or drafting nature and other
          questions which may arise will be dealt with on the basis of Community
   7      co-ordination in loco.' •                                               -


RECOMMENDATION FOR A COUNCIL DECISION AUTHORIZING THE COMMISSION TO NEGOTIATE COMMUNITY PARTICIPATION IN THE EUROPEAN CONVENTION FOR THE PROTECTION OF VERTEBRATE ANIMALS USED FOR EXPERIMENTAL AND OTHER SCIENTIFIC PURPOSES


RECOMMENDATION FOR A COUNCIL DECISION AMENDING THE AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE KINGDOM OF NORWAY, OF 14 JULY 1986, CONCERNING TRADE IN CHEESE


title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an agreement between the European Economic Community and the Republic of Peru for the supply of cereals as food aid (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 768
Vol. 1974/0117
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(74)768 final
                                                     Brussels , 4 June 1974
                   RECOMMENDATION FOR A COUNCIL DECISION
    on the conclusion of an agreement between the European Economic
          Community and the Republic of Peru for the supply of
                           cereals as food aid
              ( submitted to the Council by the Commission)
                                i
                                                                      !
C0M(74) 768 final
 ---pagebreak--- THE COUNCIL OF TOE EUROPEA.1T COMi'IUUITIES ,
                   «
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 113 , 114 and 223 thereof ;
Having regard to the Recommendation from the Commission ;
Whereas the European Economic Community has deposited a Declaration for
provisional application of the 1971 Food- Aid Convention ; whereas that
Convention has "been applicable since 1 July 1971 }
Whereas the Republic of Peru , by its letter of . 13.10.1972 , has requested
food aid :
                                            #
Whereas in viev: of the cereal supply situation m Peru that country should
be accorded , by way of gift , 15 000 metric tons of soft wheat under the
                                         »
Community Food Aid Programme for 1972/73 ?
DECIDES :
 •                                   Article 1
On behalf of the European Economic Community an Agreement , the text whereof
is annexed hereto , shall be concluded between the European Economic Community
and the Republic of Peru for the supply of soft wheat as food aid .
as food aid .
                                               # •
                                     Article 2
                                                    «
The President of the Council is hereby authorized to designate those who
are to sign the Agreement and to confer on them the requisite powers to bind
the Community .
                                                            V
Done at Brussels ,                                      ••  For the Council
                                                              The Président
 ---pagebreak---              AGREEMENT
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
AND THE REPUBLIC OF PERU ON THE SUPPLY
OF FOOD AID IN THE FORM OF CEREALS
 ---pagebreak--- HIE COUNCIL OP THE EUROPEAN COMMUNITIES .
                                                   01 the one part ,
THE GOVERNMENT OP THE REPUBLIC OF PERU
                                                    of the other part ,
HAVE DECIDED to conclude this Agreement and to this end have designated
as their plenipotentiaries :                                    -
                                       é
THE COUNCIL OP THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OP THE REPUBLIC OF PERU :
                             . ■     «
WHO HAVE ACREED AS F0LL0W3 :
 ---pagebreak---                                    ΛΠΤΤσΤ.Ε χ
 As a part of i"ts Food Aid Programme (Cereals ) for 197 /7 , "the European
 Economic Community shall supply, by way of gift , the Republic of Peru
  hereinafter referred to as the "recipient country ", with 15 000 metric
  tons of sol't wheat .
                                •• ARTICLE XI                ■   -
 Deliveries will be made in bulk , fob to Community ports .
                                   ARTICLE XXX
 The obligations and responsibilities of the European Economic Community and
 of the recipient country relating to delivery and the taking of delivery
 are defined in the -Annex , vmich forms an integral part of this Agreement .
                                   ARTICLE XV
 The 'recipient country undertakes to make all necessary arrangements for the
 transport and insurance of the product- from ports of shipment to places 01
 destination .          .
 It untertakes to exercise the greatest possible care to ensure that the
tendering arrangements for the transport by sea are' not prejudicial to the
                                       1
 free play of fair competition . Any problems arising in this connection shall
"be the subject of consultations under Artidle IX of the present Agreement .
                          * * •
                                    ARTICLE V
 The recipient country undertakes to use the product received as aid for par-
 poses of consumption and to apply , for the sale of the product 011 its market ,
the prices normally charged on that market for products of comparable cuality .
 ---pagebreak---   The proceeds from "this sale , less the cost of sea transport , insurance and the
 normal cost of selling the product on the recipient country 's market , will
 "be paid 'into a special account and allocated to the financing of one or more
 development schemes which have already "been proposed by the - recipient country
 and approved "by the European Economic Community ,
                                      ■ARTICLE VI          .                          !
                                                                                I
 The Contracting Parties undertake to implement this Agreement in such a way as
 to avoid any prejudice to the normal structure of domestic production and inter
 national trade . To this end they shall take any measures required to ensure thai
 aid supplies are in addition to , and do not replace , "business transactions which
 might reasonably "be expected, in the absence of such supplies . In particular ,
                              s
 the recipient country undertakes to import commercially from whatever source
between 1 July 1974 and 30 June 1975 & minimum quantity of 646.200 metric tons
of soft wheat or its equivalent in flour of soft wheat .
                                      ARTICLE VIT
 The recipient country shall take any measures required to prevent :
 (i )    The re-export of the product received as aid and of products and
         by-products resulting from such supplies ;
                                                 i .
 (ii )   The export , commercially or otherwise , within six months of the last
         delivery , either of the product obtained locally and of the sane nature
         as the product received as aid or of any products or by-products resultiif
         from it .                                                                  !
                                      ARTICLE VIII
The recipient country undertakes to inform the European Economic Community how j
"this Agreement is being implemented . To this end it shall provide the Commissiot
of the European Communities vrith the following informations
 ---pagebreak---                                     - 3 .-
 (i )     Not later than thirty days after tho unloading of each cargo :
          ports and dates of arrival of the vessel ; nature , quantity and
       . .quality of the products unloaded ; date on which vmloading was
          completed ;                              >
(ii )     Every three months until the quantities received as aid have been
          fully used : quantities sold , how they have "been sold , selling prices ;
       –normal selling costs on the recipient country 's market ;
(iii )    On 15 January every year until the special account has "been fully
         used :
          (a) State of this account ( incomings and outgoings ) on 31 December
                of the preceding.' year ;
          (b ) Progress achieved in the project or projects , with an indication
                of the total amount of financing undertaken at that stage .
                                   ARTICLE IX
At the request of either of them , the Contracting Parties shall consult each
other on any questions concerning the implementation of this Agreement .
                                              » .
                                   ARTICLE X
This Agreement is drawn up in duplicate in the Danish , Dutch , English , French
German and Italian languages , each of these texts being equally authentic .
 ---pagebreak---                          ANNEX TO ARTICLE III OP THE ÀGREEMEHT
                ^                     Article 1
Delivery shall be effected and risks shall pass from "the European Economic
 Community to the recipient country at the moment at which the goods have .
"been placed in the ship's hold at the port of shipment .
 The recipient country shall "bear all costs subsequent to delivery of the goods , i
 including costs of stowage and , where appropriate , of trimming and "bagging .   !
                                                                                i
 Any demurrage costs or dispatch at the port of shipment shall "be a charge on
 or for the "benefit of the European Economic Community and shall "be determined
"before the vessel sails . The rates and detailed arrangements relating thereto
'laid down in the contract "between the recipient country and the carrier must
have "been agreed upon in advance by the recipient country and the authorized
agent of the European Economic Community referred to in Article $ .
                                      Article 2
   • •
The European Economic Community shall notify the recipient country in good
time of the port or ports of shipment , the quantities to be delivered at each
port , the period within which loading must begin , and the daily loading rate .
                                       %
                                      Article 3 •
                                                0
The European Economic Community must be prepared to load the goods on the dave
resulting from the instructions in Article 8 , whereon the vessel should be
ready for loading.                                     •
                                      Article 4
On delivery of the goods , a tolerance of 5      less than the quantity to be
supplied in accordance with Article 1 of the Agreement is permitted .
 ---pagebreak---                                  Article 5
              •                                         •                      \
 Once the goods are on "board the vessel , the European Economic Community shall
 notify the recipient country of the' date of loading , and the quantity and
                \                                    '
 quality of the goods as recorded on loading.
            i
                                 Article 6
 The recipient country shall supply the European Economic Community , within the
                        «
 period referred to in Article 2 , with a vessel of dimensions corresponding to
the normal loading potential of the port of shipment .
Should it prove impossible for the vessel to begin loading within the period
referred to in Article 2 and should the recipient country not have notified
the European Economic Community of this fact in writing at the latest "by the
date on which the vessel should "be ready for loading in accordance with Article
the goods shall "be at the disposal of the European Economic Community .
Whatever the circumstances , the goods shall "be held at the expense , risk and
peril of the recipient ' country .
                               * -Article 7
Should the recipient country fail to provide a vessel of stiitable tonnage or
if the quantity made available for loading on a vessel of suitable tonnage
cannot be put on board in its entirety because of circumstances beyond the
                                               »
control of the European Economic Community , the balance shall be loaded onto
the next vessel under the conditions laid down in this annex .
In this event , until the date of loading of this balance or until the recipient
country gives notice in writing that it gives up this balance , the goods shall
be hold at the expense , risk and peril of the recipient coxmtry .
The recipient country must notify the European Economic Community within a
period of a maximum of 30 days from the beginning of loading of the shipment
"to which these goods should have belonged , of the date on which loading of
this balance is due to begin or of its renunciation of this balaaice .
 ---pagebreak--- If this obligation is not respected , the European Economic Community may
consider that it has discharged its commitment to the recipient country under
Article 1 of the Agreement .                            ;
                             Article 8                .
The recipient coiuitry shall name for the European Economic Community the
vessel that is to ship the goods at least 10 clear days prior to the estimated
date of arrival of the vessel in part or , where possible , 20 clear days prior
to this date , and shall at the same time indicate how soon after that date
the vessel will "be ready for loading .
The recipient country shall insert in the charter party a clause requiring
the captain to inform the European Economic Community at least 72 hours in
advance of the vessel 's estimated date of arrival in port .
                             Article 9
To implement the provisions of this Annex , the European Economic Community
shall appoint an authorized agent , whose name and address shall "be made knovm
                       »                                                 •
in good time to the récipient country .
The recipient country shall nominate a receiving agent in each -port of ship
ment , whose name and address shall 'be ma,de known to the European Economic
Community before the Agreement is implementedo


title: RECOMMENDATION FOR A COUNCIL DECISION AUTHORISING THE COMMISSION TO OPEN NEGOTIATIONS WITH THE REPUBLIC OF TUNISIA FOR A VOLUNTARY RESTRAINT ARRANGEMENT IN RESPECT OF CERTAIN TEXTILE PRODUCTS (presented by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 777
Vol. 1980/0241
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                         COM(80)777    final
                                         Brussels - 21st November 1980
                    RECOMMENDATION FOR A COUNCIL DECISION
            AUTHORISING THE COMMISSION TO OPEN NEGOTIATIONS WITH THE
           REPUBLIC OF TUNISIA  FOR A VOLUNTARY RESTRAINT ARRANGEMENT
                   IN RESPECT OF CERTAIN TEXTILE PRODUCTS
                 (presented by the Commission to the Council )
                                            Η
 C0M < 80 ) 777 final
 ---pagebreak---                              EXPLANATORY MEMORANDUM
   I. On 19 March 1979 Tunisia concluded a voluntary restraint arrangement „
       with the Community covering exports of a number of its textile
       products to the EEC .   The arrangement established Community and
       regional quotas for ten , categories of textile product ;     it is due
       to expire on 31 December .
 II . Given the present state of,the European texti le industry a new arrange
      ment will be needed from 1 January 1981 .      This has been explained to
      the Tunisian authorities , inter alia by Mr. Davignon , who visited Tunis
      from 28-30 August .
III . On that occasion the Tunisian Government, indicated that whi le deploring
      the absence of any prospect for a rapid return to the letter of the
      co-operation agreement^ it intended to take a realistic and co-oper-
      ative attitude towards the Community , and therefore agreed in principle
      to a further voluntary restraint arrangement .
 IV . Tunis feels that the new arrangement should be both temporary and
      more favourable than its predecessor / so as to constitute a significant
      step back towards the " legality " of the co-operation agreement .
      As regards the content of the arrangement / Tunisia has informed the
      Commission that it , considers the following points essential :
      - the number of products subject to quota should be reduced
      - the Community should not treat imports of indigo denim of Tunisian ~
         origin less favourably than imports of the same product produced in
         similar conditions                           r
      - greater flexibility should be allowed for trousers ( category 6 ).
  V. In the course of the exploratory talks which took place in Brussels
        on 3 October the Commission again indicated the need for a new
        arrangement , particularly so that the Community would not be obliged
        to apply the safeguard clause during the year .     It also emphasised
        that it was in the interests of both parties to introduce c !
        administrative co- operation based on trie- double-checking system .
                                                                       e/• • e
 ---pagebreak---                                                                  2.
The Tunisian delegation was not in a position at that stage to be
more specific about the improvements Tunis wanted to see incorp
orated in the new arrangement .   However , it repeated the points
made in Tunis by the Minister for the National Economy ( see III
and IV above ), with particular reference to indigo denim , its ex
ports of . which Tunisia feels are being discriminated against since
the United States , a non-preferential country , exports this product
to the Community free of any quantitative limitation .
 ---pagebreak---               RECOMMENDATION. FOP * " OUNCIL DECISION AUTHOR-
              ISING THE COMMISSION TO OPEN NEGOTIATIONS WITH
              THE REPUBLIC OF TUNISIA . TOR A VOLUNTARY RE -  '
              STHAINT ARRANGEMENT IN RESPECT OF CERTAIN TEX
                             TILE PRODUCTS
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Com
munity *, and in particular Article 113 thereof ,
Having regard to the Yecommendation from the Conrni ssion .
Whereas the Community has concluded bilateral textile agreements and
arrangements with certain third countries ,       whereas it is necessary
to renew the arrangement with Tunisia , which expires oh 31 December
1980 ,. '   .
                    y
HAS DECIDED AS     FOLLOWS :
                               Sole Article
The Commi ssion is hereby authorised to open negotiations with the
Republic of Tunisia with a view to concluding a voluntary restraint
arrangement in respect of certain texti le products .
The Commission shall conduct the negotiations in accordance with the
directives contained in Annex 1 and in consultation with the Special
                                                              r
Committee provided for in Article 113 of the Treaty .
 ---pagebreak---                                                                     ANNEX 1
                            Negotiating directives
 1 . Duration of the arrangement
       One year ( from 1 January 1981 to 31 December 1981 ) with a review
     - clause for 1982 ( 1 ).      .
2 . Group I products
       a ) Category 2 : ( 2 )
           - removal of quota , establishment of Community . and regional
             limits beyond which the safeguard clause can be brought into
                                     I
             operation ;
                                                                              • -
           - setting up of compulsory machinery (coupled with suspension of
             exports ) to operate when imports stand at 80 % of the limit .
                   : i
      b ) Category 4 :
           - increase in line with the 1977 burden-sharing formula .
      c ) Category 6 :
           - Community quota to be raised 10 % from 1980 administrative
             level ; and adjustment of regional quotas .
      d ) Category 7 :
           - increase of 10 % in Community quota , adjustment of regional
             a I location .
      e ) Category 8 :                                           v'
           - increase in line- with the 1977 burden-sharing formula .
                                                                             •/•• •■
( 1 ) Not      later than three months . before the end of 1981 the parties
        shall review "the te:;':ile situation to determine what arrangements
        are to apply to Tunisian textile exports from 1 January 1982 , in
        the context of the relevant provisions of the co-operation agreement
( 2 ) Indigo denim account - f <-■ r nearly all Tunisian exports of category
        2 fabrics . It is p '..nned to create a separate statistical heading
        for denim . Once thi ;         Jone , the terms of the arrangement -
        assuming : i is s t i L in r orce - will apply only to denim .
 ---pagebreak---                                                                                2.
  3 . Group II products :
       - elimination of regional quotas ( categories 13 , 21 , 26 + 27 , and 27 ) ;
           less than 50 % of the 1979 quotas for these products was taken up
       - statistical SL Vei I lance " of imports plus consu Itati on clause and
           re-introduction   of quantitative controls in the event of abnormal
          trade flows developing .         '
 4 . ExpOrtl^to Greece ;                                                              -
       - the- arrangement will include quotas for exports to Greece corres-
     3 yppnelang tothe " theoretical minimum share " ( 1 ).
5 . Outward processing :
       - if the outward processing regulation currently under consideration
          is adopted specific outward processing quotas wi 1 1 have to be
       'incorporated in the arrangement .
6 . Flexibi lity ■: '
       ~ flexibility margin to be increased . -
7 . Administrative co-operation :
      - As a quidpro quo for the above substantial concessions Tunisia .
          will hav£ to agree to the introduction of the double-checking
          system, which is both administratively simpler than the present
          system and able to prevent any occurrence of fraud ( it has so far
         been extremely reluctant to do so ).      . . •
'                   i                                             '
8 . The implications for Morocco :
      - Morocco agreed to a voluntary restraint arrangement with the Com-
         muryity  which is not due to expire until 31 December 1981 . In the
         course  of the negotiations Morocco was rightly concerned lest it
       . should   receive less, favourable treatment than- Tunisia simply because
         it had  agreed to a longer-term arrangement .
                                                                           m / 'm m m m
(1 ) 5 % of 2 % of the total EEC ( 9 ) quota (a minimum level of 1 tonne
        or 1500 pieces , according to the product ),                -
 ---pagebreak--- In return for use of the double-checking system , the Community could accept
to remove , for Morocco , the quotas of Group II and the increase in the  *
flexibility margin .
 1 ■>       1 ■
 ---pagebreak---                                                                                ANNEX 2
                                                          19 8 1
                                                       Q U 0 TA S
                                                                                l
   CATEGORY         UNIT             D          F               I     BNL       UK      IRL   : DK        GR            CEE
                                                                                !
      *             " 1,000        1 310                                                       100   ''. ' 5
                                              3,090            330    330       670       30                           4,865
  T - shirts        pieces
                                 l
      6                 1,000
                                   3,070      3,480            550 3,480        650       20      90      15          11,355
   Trousers         pieces
      7 ,               1,000
                                     685        555             90    420        80         4     1*       2           1,850
  : Blouses       i pieces 3                      r  T
                                                           3 "
                                                                                ■ ■ ■ i
                  I   :       3
                  i  :        :
      8                 1,000      4,225      2,130            380    300     . 600       25      50      10           7,420
    Shirts          pieces
                  '   '                                                               • :
                                      ' SAFEGUARD CLAUSE TRIGGER LEVEL FOR CATEGORY 2
                                                          PRODUCTS
-              *i               i
                                                                                \
      2
  Woven Cotton      Tonnes           510      6,530            550  2,800       135       35      35      10          10,605
     fabrics


title: RECOMMENDATION OF THE COUNCIL DECISION ON THE STAND TO BE ADOPTED BY THE COMMUNITY AT THE INTERNATIONAL NEGOTIATIONS ON THE AMENDMENT OF CERTAINS PROVISIONS OF THE ARRANGEMENT ON GUIDELINES FOR OFFICIALLY SUPPORTED EXPORT CREDITS

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 41
Vol. 1980/0016
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---                                                                COM(80)41 final
     COMMISSION                                                Brussels , 1st February 1980
       OF THE
EUROPEAN COMMUNITIES                                           FOR OFFICIAL USE ONLY
   General Secretariot
                                RECOMMENDATION OF THE COUNCIL DECISION
                          ON THE STAND TO BE ADOPTED BY THE COMMUNITY AT THE
              INTERNATIONAL NEGOTIATIONS 'ON THE AMENDMENT OF CERTAINS PROVISIONS OF THE
                .  ARRANGEMENT ON GUIDELINES FOR OFFICIALLY SUPPORTED EXPORT CREDITS
            C0M(80 ) 41   final
 ---pagebreak---                           EXPLANATORY MEMORANDUM
On 4 April 1978 the Council adopted a decision on the application of
certain guidelines in the , field of officially supported export credits .
As a result of this decision , the guidelines set out in the informal
arrangement negotiated on 22 February 1978 have been applicable since
1 April that year in respect of officially supported export credits to
non-Community countries where the maximum repayment term , as defined
in that text , is no less than two years .
The Arrangement provides for a minimum cash payment , observation of max
imum repayment terms for credit and minimum interest rates .     These terms
and interest rates vary according to the GNP per head , with the result
that recipient countries are subdivided into three categories :     rich ,
intermediate and poor .
Like the non-Community countries supplying export credits that are parties
to the Arrangement , the Community has up to now found that these guide
 lines operate fairly satisfactorily .
                                >•
However , since the Arrangement on officially supported export credits
entered into force , world economic trends have made their impact on the
export credits sector .
The problem of tightening up export credits must be viewed in the light of
various considerations or factors , namely :
    ( i ) the significant rise in interest rates on the capital market since
          the Arrangement entered into force and the gap between these rates
          and the minimum rates laid down in the guidelines ;
 ---pagebreak---          • •        .•  . .. .   .  . .     .  ............ - - –-– - ■■  ■ •     ^.. 1 Miiifìi
                                         - 2 -
  ( ii ) the need to Limit budgetary expenditure connected with measures
          to facilitate the financing of exports ; „
( iii ) the increase of the gross national income in certain countries
          receiving credits ; ' ' I
  ( iv ) the increasing difficulties being experienced by the developing
          countries in obtaining credits or repaying the debts they contract .
          This state of affairs calls for firmer discipline in the export
          credits sector , accompanied by adjustments to the credit terms
          specified in the Arrangement . In the Commission 's opinion , firmer
          discipline is particularly necessary primarily as regards export
          credits to the rich countries . Official support should no longer
          be given for export credits intended for countries in Category I.
          However , in view of the current situation and the overrabrupt
          nature of such a solution , the Commission considers that attainment
          of the aims listed below could bring about a marked improvement :
               Ci ) officially supported export credits should be granted to the
                    rich countries only in exceptional cases and the repayment
                    term should in no event exceed five years ( it should be
                    mentioned that the actual understanding considers the limit
                    of five years as normal credit length for rich countries ),
                    and even then be subject to prior notification ;
             ( ii ) as market rates have risen significantly over the past months ,
                    it would be advisable to increase the rates currently specified
                    in the Arrangement by 1.5% in respect of the rich countries
                    and 0.5% for the intermediate countries .
                    Credit rates for the poor countries will remain unchanged .
                    The stagnation of growth in the industrialized countries and
                    the spiralling price of energy have hit the economies of those
                    developing countries which do not have oil very hard .
                    The new minimum rates will be reviewed annually as there can
                    be no certainty that the present levels will be maintained ;
 ---pagebreak---                                       - 3 -
( iii ) the present list of recipient countries , which is based on objective
        data , viz . the statistics on gross national income per head pub
        lished by. the World' Bank , will have to be corrected .   The data
        concerned ( situation at 1975 ) no longer tally with the facts and
        takes no account of the accession of a number of countries to
        independence .   The new list to be compiled should also be reviewed
        at regular intervals so that countries may be transferred from one
        category to another if need be .
For the time being the Commission suggests that the other provisions of
the Arrangement should remain unchanged .      However , it may quite possibly
put forward further proposals in the quite near future should it prove
necessary or desirable to adjust or improve the Arrangement .
The above mentioned modifications of the Understanding could be presented
during the regular review of the Understanding next May .        However , taking
account of the rapid development of the matter , the Commission is of the
opinion that an urgent solution should .be sought before the review in
May .   In conclusion , the Commission considers it advisable that the
Council should approve the directives on the Community stand in this
matter and therefore recommends that it adopt the attached draft decision .
 ---pagebreak---                        Recommendation of the
                             COUNCIL DECISION
              on the stand to be adopted by the Community at
              the international negotiations on the amendment
              of certain provisions of the Arrangement on
              Guidelines for Officially Supported Export Credits
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
                           λ
and in particular Article 113 thereof ,
Having regard to the Commission 's recommendation ,
 ---pagebreak---                                  - 2 -
Whereas it is advisable that directives should be given on the stand to
be adopted by the Community at the international negotiations on the
amendment of certain provisions of the Arrangement on guidelines for
officially supported export credits ,
HAS DECIDED AS FOLLOWS :
                             Sole arti eie
At the international negotiations on the amendment of certain provisions
of the Arrangement on guidelines for officially supported export credits
the Commission shall state the Community 's stand in application of the
annexed directives .
It shall act in consultation with the special Committee provided for in
Article 113 of the Treaty , which shall assist it in its task .
                             >•
                           A
                                           Done at
                                           For the Council
                                           The President
 ---pagebreak---                                                                         ANNEX
 I.    Arrangement to which the present directives relate
                                                    Α
       These directives relate to the Arrangement on guidelines for
       officially supported export credits .
II . . Negotiating brief
       The Commission shall urge that the following amendments be made
       to the Arrangement :
       ( a ) List of countries :
             The list based on the World Bank statistics for 1975 will have
             to be reviewed in the light of the Bank 's statistics for 1977 .
             The current subdivision on the basis of GNPs of £ 1 000 and
             & 3 000 per head is to be retained .     Adjustments will there
             fore consist solely of transferring countries from one of
             the existing categories to another on the basis of the World
             Bank 's more recent statistics .
       ( b ) Minimum interest rates :
             . repayment terms of between two and five years :      rich countries ,
               9.25% ;  intermediate countries , 7.75% ;    poor countries , 7.50% .
             . repayment terms of over five years :     intermediate countries , 8.25% ;
               poor countries , 7.50% .
       ( c ) Minimum repayment term :
             The maximum repayment term for an officially supported export
             credit granted exceptionally to a rich country shall in no case
             exceed five years .   If , in exceptional circumstances , a party
             to the Arrangement proposes to give its support to an operation
             of this kind , it shall give prior notification thereof in
             accordance with the procedure provided for in paragraph 9 ( a )
             of the Arrangement .   The repayment terms currently applicable to
             the intermediate and poor countries 'shall remain -unchanged .