Agreement

in the form of an Exchange of Letters between the European Community and Ukraine, represented by the Government of Ukraine, concerning the extension and amendment of the Agreement between the European Community and Ukraine on trade in textile products

A. Letter from the European Community

Sir,

1. I have the honour to refer to the Agreement between the European Community and Ukraine on trade in textile products initialled on 5 May 1993, as last amended by the Agreement in the form of an Exchange of Letters signed on 9 March 2005 (hereafter referred to as the Agreement).

2. According to Article 20(1), the Agreement shall only apply until 31 December 2006. The European Community proposes to extend the duration of the Agreement, subject to the following amendments and conditions:

2.1. The text of Article 20(1) shall be replaced by the following:

"This Agreement shall enter into force on the first day of the month following the date on which the Parties notify each other of the completion of the procedures necessary for that purpose. It shall be applicable until 31 December 2007. Thereafter, the application of all the provisions of this Agreement shall be extended automatically for a period of one more year up to 31 December 2008, unless either Party notifies the other at least six months before 31 December 2007 that it does not agree with this extension."

2.2. The tariff rates applied by Ukraine to exports of EC origin of products of HS chapters 50 to 63 will not exceed the final rates agreed in Appendix 7 of the Exchange of Letters between the European Community and Ukraine signed on 19 December 2000.

3. Should Ukraine become a Member of the World Trade Organisation (WTO) before the date of the expiry of the Agreement, the agreements and rules of the WTO shall be applied from the date of Ukraine's accession to the WTO.

4. 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 2007 on the condition of reciprocity.

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

B. Letter from the Government of Ukraine

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 Community and Ukraine on trade in textile products initialled on 5 May 1993, as last amended by the Agreement in the form of an Exchange of Letters signed on 9 March 2005 (hereafter referred to as the Agreement).

2. According to Article 20(1), the Agreement shall only apply until 31 December 2006. The European Community proposes to extend the duration of the Agreement, subject to the following amendments and conditions:

2.1. The text of Article 20(1) shall be replaced by the following:

"This Agreement shall enter into force on the first day of the month following the date on which the Parties notify each other of the completion of the procedures necessary for that purpose. It shall be applicable until 31 December 2007. Thereafter, the application of all the provisions of this Agreement shall be extended automatically for a period of one more year up to 31 December 2008, unless either Party notifies the other at least six months before 31 December 2007 that it does not agree with this extension."

2.2. The tariff rates applied by Ukraine to exports of EC origin of products of HS chapters 50 to 63 will not exceed the final rates agreed in Appendix 7 of the Exchange of Letters between the European Community and Ukraine signed on 19 December 2000.

3. Should Ukraine become a Member of the World Trade Organisation (WTO) before the date of the expiry of the Agreement, the agreements and rules of the WTO shall be applied from the date of Ukraine's accession to the WTO.

4. 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 2007 on the condition of reciprocity."

I have the honour to confirm that the foregoing is acceptable to the Government of Ukraine and that your letter and this letter constitute an Agreement in accordance with your proposal.

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

--------------------------------------------------