AGREEMENT in the form of an exchange of letters between the European Community and the Democratic Socialist Republic of Sri Lanka amending the Agreement between the European Economic Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products to take into account the expected accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union

Letter from the Council of the European Union

Sir,

1. I have the honour to refer to the Agreement between the European Economic Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products initialled on 31 May 1986, as last amended and extended by the exchange of letters initialled on 17 December 1992.

2. In order to take into account the likely accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union on 1 January 1995, the European Community considers that the following amendments should be made to the Agreement between the European Economic Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products:

2.1. Should the Uruguay Round Agreement on Textiles and Clothing become applicable in our relationships, as a consequence of the accession of the Democratic Socialist Republic of Sri Lanka and the European Community to the WTO, Appendix I sets out the notional quantitative restrictions for the enlarged Community to be considered, for the purposes of notifying to the Textiles Monitoring Body, as those maintained by the enlarged Community and in force before the day of entry into force of the Uruguay Round Agreement on Textiles and Clothing, within the meaning of Article 2 of the Uruguay Round Agreement on Textiles and Clothing.

Should the Uruguay Round Agreement on Textiles and Clothing not become applicable in our relationships Annex II of the Agreement which sets out the quantitative restrictions for exports from the Democratic Socialist Republic of Sri Lanka to the European Union is replaced for the period 1 January to 31 December 1995 by Appendix II to this letter.

2.2. Article 14, paragraph 2, subparagraph 2, second indent of Protocol A, Title III, Section II should be amended as follows:

'- two letters identifying the intended Member State of customs clearance as follows:

AT = Austria

BL = Benelux

DE = Federal Republic of Germany

DK = Denmark

EL = Greece

ES = Spain

FI = Finland

FR = France

GB = United Kingdom

IE = Ireland

IT = Italy

PT = Portugal

SE = Sweden`

2.3. The Annex to Protocol A, setting out the model of the certificate of origin is replaced by Appendix III to this letter.

2.4. The Annex to Protocol A setting out the model of the export licence is replaced by Appendix IV to this letter.

2.5. The Annex to Protocol B setting out the model of the certificate applicable to certain cottage industry and folklore products is replaced by Appendix V to this letter.

2.6. Should the Uruguay Round Agreement on Textiles and Clothing become applicable in our relationships, as a consequence of the accession of the Democratic Socialist Republic of Sri Lanka and the European Community to the WTO, Appendix VI sets out the notional quantitative restrictions for economic outward processing operations for the enlarged Community to be considered, for the purposes of notifying to the Textiles Monitoring Body, as those maintained by the enlarged Community and in force before the day of entry into force of the Uruguay Round Agreement on Textiles and Clothing, within the meaning of Article 2 of the Uruguay Round Agreement on Textiles and Clothing.

Should the Uruguay Round Agreement on Textiles and Clothing not become applicable in our relationships the Annex to Protocol E of the Agreement which sets out the quantitative restrictions for economic outward processing operations is replaced for the period 1 January to 31 December 1995 by Appendix VII to this letter.

2.7. Should one or more acceding countries not join the European Union the adjustments calculated for this or these countries shall be deducted from the limits set out in the Appendices to this letter and the respective amendments mentioned under point 2.2 shall not enter into force.

2.8. Notwithstanding the modifications referred to under points 2.3, 2.4 and 2.5, during a transitional period that will end on 30 June 1995, the competent authorities of the Democratic Socialist Republic of Sri Lanka shall be authorized to continue issuing the forms that were in use in 1994.

2.9. Should inaccuracies appear in the trade figures used to establish the adjustments contained in Appendices I, II, VI and VII, technical revisions of these adjustments will be made following consultations and provided that the request for consultations is made not later than 28 February 1995.

3. I should be obliged if you could kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this Agreement in the form of an exchange of letters shall enter into force on the first day of the month following the day on which the Parties have notified each other that the legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from 1 January 1995 on the conditions to be specified in an exchange of notes (see Appendix VIII).

Please accept, Sir, the assurance of my highest consideration.

For the Council of the European Union

Appendix I

NOTIONAL COMMUNITY QUANTITATIVE RESTRICTIONS 1994 Direct quotas

>TABLE>

The footnotes to Annex II of the Agreement as initialled on 31 May 1986 remain unchanged.

Appendix II

ANNEX II

COMMUNITY QUANTITATIVE RESTRICTIONS 1995 Direct quotas

>TABLE>

The footnotes to Annex II of the Agreement as initialled on 31 May 1986 remain unchanged.

Appendix III

>REFERENCE TO A FILM>

Appendix IV

>REFERENCE TO A FILM>

Appendix V

>REFERENCE TO A FILM>

Appendix VI

NOTIONAL ECONOMIC OUTWARD PROCESSING QUOTAS 1994

>TABLE>

Appendix VII

ANNEX TO PROTOCOL E

ECONOMIC OUTWARD PROCESSING QUOTAS 1995

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TABLE POSITION>

Appendix VIII

Exchange of notes

The Directorate-General for External Economic Relations of the Commission of the European Communities presents its compliments to the Democratic Socialist Republic of Sri Lanka to the European Communities and has the honour to refer to the Agreement on trade in textile products between the Democratic Socialist Republic of Sri Lanka and the European Economic Community initialled on 31 May 1986 as amended and extended by the exchange of letters initialled on 17 December 1992 and further amended by the exchange of letters initialled on 22 December 1994.

The Directorate-General wishes to inform the Mission of the Democratic Socialist Republic of Sri Lanka that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Agreement, the European Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Agreement provided that one hundred and twenty days notice is given.

The Directorate-General for External Economic Relations would be grateful if the Mission of the Democratic Socialist Republic of Sri Lanka would confirm its agreement to the foregoing.

The Directorate-General for External Economic Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Democratic Socialist Republic of Sri Lanka to the European Communities the assurance of its highest consideration.

The Mission of the Democratic Socialist Republic of Sri Lanka to the European Communities presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the note of the Directorate-General of (date of note verbale) regarding the Agreement on trade in textile products between the Democratic Socialist Republic of Sri Lanka and the European Economic Community initialled on 31 May 1986 as amended and extended by the exchange of letters initialled on 17 December 1992 and further amended by the exchange of letters initialled on 22 December 1994.

The Mission of the Democratic Socialist Republic of Sri Lanka wishes to confirm to the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Agreement, the Government of the Democratic Socialist Republic of Sri Lanka is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Agreement provided that one hundred and twenty days notice is given.

The Mission of the Democratic Socialist Republic of Sri Lanka to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration.

Letter from the Government of the Democratic Socialist Republic of Sri Lanka

Sir,

I have the honour to acknowledge receipt of your letter of . . . which reads as follows:

'Sir,

1. I have the honour to refer to the Agreement between the European Economic Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products initialled on 31 May 1986, as last amended and extended by the exchange of letters initialled on 17 December 1992.

2. In order to take into account the likely accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union on 1 January 1995, the European Community considers that the following amendments should be made to the Agreement between the European Economic Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products:

2.1. Should the Uruguay Round Agreement on Textiles and Clothing become applicable in our relationships, as a consequence of the accession of the Democratic Socialist Republic of Sri Lanka and the European Community to the WTO, Appendix I sets out the notional quantitative restrictions for the enlarged Community to be considered, for the purposes of notifying to the Textiles Monitoring Body, as those maintained by the enlarged Community and in force before the day of entry into force of the Uruguay Round Agreement on Textiles and Clothing, within the meaning of Article 2 of the Uruguay Round Agreement on Textiles and Clothing.

Should the Uruguay Round Agreement on Textiles and Clothing not become applicable in our relationships Annex II of the Agreement which sets out the quantitative restrictions for exports from the Democratic Socialist Republic of Sri Lanka to the European Union is replaced for the period 1 January to 31 December 1995 by Appendix II to this letter.

2.2. Article 14, paragraph 2, subparagraph 2, second indent of Protocol A, Title III, Section II should be amended as follows:

"- two letters identifying the intended Member State of customs clearance as follows:

AT = Austria

BL = Benelux

DE = Federal Republic of Germany

DK = Denmark

EL = Greece

ES = Spain

FI = Finland

FR = France

GB = United Kingdom

IE = Ireland

IT = Italy

PT = Portugal

SE = Sweden"

2.3. The Annex to Protocol A, setting out the model of the certificate of origin is replaced by Appendix III to this letter.

2.4. The Annex to Protocol A setting out the model of the export licence is replaced by Appendix IV to this letter.

2.5. The Annex to Protocol B setting out the model of the certificate applicable to certain cottage industry and folklore products is replaced by Appendix V to this letter.

2.6. Should the Uruguay Round Agreement on Textiles and Clothing become applicable in our relationships, as a consequence of the accession of the Democratic Socialist Republic of Sri Lanka and the European Community to the WTO, Appendix VI sets out the notional quantitative restrictions for economic outward processing operations for the enlarged Community to be considered, for the purposes of notifying to the Textiles Monitoring Body, as those maintained by the enlarged Community and in force before the day of entry into force of the Uruguay Round Agreement on Textiles and Clothing, within the meaning of Article 2 of the Uruguay Round Agreement on Textiles and Clothing.

Should the Uruguay Round Agreement on Textiles and Clothing not become applicable in our relationships the Annex to Protocol E of the Agreement which sets out the quantitative restrictions for economic outward processing operations is replaced for the period 1 January to 31 December 1995 by Appendix VII to this letter.

2.7. Should one or more acceding countries not join the European Union the adjustments calculated for this or these countries shall be deducted from the limits set out in the Appendices to this letter and the respective amendments mentioned under point 2.2 shall not enter into force.

2.8. Notwithstanding the modifications referred to under points 2.3, 2.4 and 2.5, during a transitional period that will end on 30 June 1995, the competent authorities of the Democratic Socialist Republic of Sri Lanka shall be authorized to continue issuing the forms that were in use in 1994.

2.9. Should inaccuracies appear in the trade figures used to establish the adjustments contained in Appendices I, II, VI and VII, technical revisions of these adjustments will be made following consultations and provided that the request for consultations is made not later than 28 February 1995.

3. I should be obliged if you could kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this Agreement in the form of an exchange of letters shall enter into force on the first day of the month following the day on which the Parties have notified each other that the legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from 1 January 1995 on the conditions to be specified in an exchange of notes (see Appendix VIII).

Please accept, Sir, the assurance of my highest consideration.`

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Democratic Socialist Republic of Sri Lanka

Appendix I

NOTIONAL COMMUNITY QUANTITATIVE RESTRICTIONS 1994 Direct quotas

>TABLE>

The footnotes to Annex II of the Agreement as initialled on 31 May 1986 remain unchanged.

Appendix II

ANNEX II

COMMUNITY QUANTITATIVE RESTRICTIONS 1995 Direct quotas

>TABLE>

The footnotes to Annex II of the Agreement as initialled on 31 May 1986 remain unchanged.

Appendix III

>REFERENCE TO A FILM>

Appendix IV

>REFERENCE TO A FILM>

Appendix V

>REFERENCE TO A FILM>

Appendix VI

NOTIONAL ECONOMIC OUTWARD PROCESSING QUOTAS 1994

>TABLE>

Appendix VII

ANNEX TO PROTOCOL E

ECONOMIC OUTWARD PROCESSING QUOTAS 1995

>

TABLE POSITION>

Appendix VIII

Exchange of notes

The Directorate-General for External Economic Relations of the Commission of the European Communities presents its compliments to the Democratic Socialist Republic of Sri Lanka to the European Communities and has the honour to refer to the Agreement on trade in textile products between the Democratic Socialist Republic of Sri Lanka and the European Economic Community initialled on 31 May 1986 as amended and extended by the exchange of letters initialled on 17 December 1992 and further amended by the exchange of letters initialled on 22 December 1994.

The Directorate-General wishes to inform the Mission of the Democratic Socialist Republic of Sri Lanka that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Agreement, the European Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Agreement provided that one hundred and twenty days notice is given.

The Directorate-General for External Economic Relations would be grateful if the Mission of the Democratic Socialist Republic of Sri Lanka would confirm its agreement to the foregoing.

The Directorate-General for External Economic Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Democratic Socialist Republic of Sri Lanka to the European Communities the assurance of its highest consideration.

The Mission of the Democratic Socialist Republic of Sri Lanka to the European Communities presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the note of the Directorate-General of (date of note verbale) regarding the Agreement on trade in textile products between the Democratic Socialist Republic of Sri Lanka and the European Economic Community initialled on 31 May 1986 as amended and extended by the exchange of letters initialled on 17 December 1992 and further amended by the exchange of letters initialled on 22 December 1994.

The Mission of the Democratic Socialist Republic of Sri Lanka wishes to confirm to the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Agreement, the Government of the Democratic Socialist Republic of Sri Lanka is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Agreement provided that one hundred and twenty days notice is given.

The Mission of the Democratic Socialist Republic of Sri Lanka to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration.

AGREED MINUTE

On carry over from acceding countries

During consultations held between delegations from the Democratic Socialist Republic of Sri Lanka and the European Community, the two Parties agreed that provided that they are notified by 28 February 1995 at the latest, quantities within the quantitative limits existing in 1994 in any of the acceding countries that have remained unused in 1994 may be the object of an exceptional carry-over to the corresponding 1995 Community limits, following consultations in accordance with the procedure referred to in Article 16 of the Agreement.

The quantities carried over in each category shall not exceed 7 % of the quantitative limit from which the carry-over is requested.

The transposition into EU categories shall be made according to the enlargement methodology already used by the European Community in the apportioning of the textile quotas of acceding countries to the appropriate EU quotas.

Brussels, 22 December 1994.

For the Delegation of the Democratic Socialist Republic of Sri Lanka

For the Delegation of the European Community