Brussels, 06/11/2002 (Agence Europe) - On Wednesday, the Union signed a protocol of agreement with Brazil on the liberalisation of the textiles trade, whereby it lifts all textile quotas still applying to deliveries from Brazil. Brazil, on the other hand, agrees to respect maximum tariff levels on Community exports of clothing and textiles and to discontinue application of an additional tax on textile and clothing imports. The agreement, that the Fifteen endorsed on 5 November this year, "is a clear sign that the EU is ready to anticipate opening up its textile market ahead of the WTO deadline of 2005, provided its trading partners are ready to provide better access to their markets", European Commissioner Pascal Lamy insisted. The elimination of trade barriers to textile products also contributes to improving the roadmap agreed in July at ministerial level, in the context of negotiations under way with Mercosur, the Commission's spokesperson says in a press release.
The main elements of the agreement, jointly signed by Brazil's Ambassador to Brussels, José Alfredo Graça Lima, and by the Deputy Director General to Trade, Pierre Defraigne, are as follows: - Brazil commits not to exceed certain maximum levels of tariffs for the whole textile and clothing sector (these levels are maximum 14% for yarns, 16-18% for fabrics, and 20% for clothing). An additional tax of 1.5% should be eliminated upon its expiry planned for the end of 2002; - Both parties agree to refrain from adopting any non-tariff measures, which could hinder trade in textile and clothing products. This will address in particular a problem concerning customs valuations in Brazil raised by the EU industry; - In the context of the on-going EU-Mercosur negotiations, both parties agree to seek an early elimination of the customs duties applied to textile and clothing products, either upon entry into force or at the latest in the first stage of the industrial tariff dismantling schedule; - In exchange, the EU will suspend quotas applied on ten product categories on a reciprocal basis; - The EU will subject the categories currently under quotas to double-checking (surveillance); - The EU will closely cooperate with Brazil to ensure authenticity of origin of its exports to Brazil. Administrative cooperation will thus be reinforced. The agreement contains a clause of suspension of benefits in case of non-respect of commitments or of non-elimination of the 1.5% additional tax.