Details of the Proposed Agreements

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Each of the suppliers listed in Annex I will be offered a similar form of agreement.

It is intended that each agreement should cover all textile and clothing products whether or not the supplier concerned actually exports them to the EMC for the time being.

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Within each agreement three different types of arrangement will be proposed for individu: products:

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(i) quotas: in most cases where the EC is seeking restraints

it is intended that these should take the form of overall Community limits on imports from the supplier of a particular product; these limits would then be allocated among Member States as individual quotas according to the EEC's 'burden sharing' formula;

(ii) ceilings: where EEC imports are concentrated in one or two

Member States there would again be overall Community limits, or ceilings, within which there would be quotas for the major importing Member States and provision for quota levels for other Member States should imports increase too quickly;

(iii) baskets: the EC will propose basket arrangements for all other textile products, under which the Community would be able to insist on immediate restraints if imports from any of the suppliers listed in Annex I reached certain defined. levels either in the Community as a whole or in an individual Member State.

Within this overall scheme the form and coverage of restraints on individual products from each supplier depends on 2 main factors:

(i)

the sensitivity of the product: the EEC has classified all the textile and clothing products which will be covered by the agreements into five categories according to their sensitivity. The basis of this classification as a rule is the level of import penetration from low-cost sources for the product in the EEC as a whole. All the more sens- itive products fall into Groups I and II (listed in Annex II); .

(ii) the significance of the supplier concerned.

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